Changes to Santander UK Corporate Accounts Terms and Conditions

We’re making some changes to our Corporate Accounts Terms and Conditions and want to let you know what this means for you. These changes take effect from 15th April 2021, except where stated otherwise below.

These changes apply to the specific accounts advised to you in writing, which will in future be identified as Santander Corporate & Investment Banking accounts, rather than Santander Corporate & Commercial Banking accounts.

If you have other accounts with Santander Corporate & Commercial Banking, these accounts are not affected by this notice, but you may receive a separate notice from Santander Corporate & Commercial Banking relating to your Santander Corporate & Commercial Banking accounts.  

Santander Corporate & Commercial Banking and Santander Corporate & Investment Banking are both trading names of Santander UK plc.

What type of changes are we making?

The sections below highlight the main changes outlined in the documents. We’ve also updated the general layout of your Corporate Accounts Terms and Conditions to make them easier to understand.

Opt out of a number of Regulations in the Payment Services Regulations

The Payment Services Regulations 2017 (PSRs) allow banks to agree with their customers that certain provisions of the Regulations do not apply. This is known as the “Corporate Opt-Out”. These changes affect:

  • How we may vary the Account Terms and Conditions.
  • The length of notice we have to give you to terminate our agreement.
  • Limitation of our liability in relation to incorrectly executed payments on your account.
  • Refunds for payments initiated through a payee (card payments).
  • Reduction of the time period within which you must notify us of an unauthorised or incorrectly executed transaction on your account.

Changes to our Notice Deposit Accounts

  • A withdrawal request on GBP corporate notice accounts must now be received by 1pm on a working day in order for it to take effect that day.
  • With effect from 1 April 2021, we’re introducing a “Notice Reversion rate” on GBP corporate notice accounts meaning that the credit interest rate on the funds under notice of withdrawal will be reduced for the duration of the notice period. 

Removal of terms covering products and services that are being withdrawn

  • You’ll no longer be able to pay foreign currency notes and coins into your account.
  • We are no longer providing cash services nor the use of a nominated office/Post Office.
  • You’ll only be able to pay in cheques in by post.
  • We’ve removed references to account based Time Deposits and Partial Withdrawal Time Deposits, which will no longer be available. Term Deposits are unaffected.  
  • We’ve removed Conditions relating to the Current Account Switch Service.

Other changes we’re making at the same time

  • We’ve included a definition of “Insolvent” so that it’s clear when this term is used in the Terms and Conditions what it means.
  • We’ve removed your right to cancel your account within 14 days of account opening.  You can of course close your current account and most deposit accounts at any time.
  • We already have the right to introduce negative interest rates or fees or charges if Bank of England reference interest rates become negative, but we’ve now explained how any such charge would be taken from your account.
  • We’ve clarified when you’ll be invoiced charges for transactions that take place on your account on the last day of the charging period when that day is a Sunday.
  • For transactions in a foreign currency using a debit card, we’ve explained how you can get more information about the exchange rate used and transaction costs.
  • We’ve amended some definitions as a consequence of the UK leaving the European Union.
  • We’ve explained further what we mean when we say that your account is not transferable.
  • The Courts of Scotland and Northern Ireland will no longer have jurisdiction in respect of disputes relating to your Terms and Conditions.

What does this mean in practice?

Please click on the titles below to find out more about each of the changes.

Agreement to opt out of certain provisions of the Payment Services Regulations

The Payment Services Regulations 2017 (PSRs) allow banks to agree with their customers that certain provisions of the Regulations do not apply. This is known as the “Corporate Opt-Out”. Santander has already agreed with its customers who have an annual turnover of £6.5 million or more, through its Terms and Conditions since January 2018, that the following Regulations do not apply:

  • Regulation 75 – evidence on authentication and execution of payment transactions
  • Regulation 77 – Payer or payee’s liability for unauthorised payment transactions
  • Regulations 91 and 92 – liability in respect of non-execution or defective or late execution of payment transactions initiated by the payer or the payee.

Santander is seeking agreement to opt out of all other PSRs where it is permitted to do so. This means that the following provisions of the PSRs shall not apply in relation to payment services provided in relation to your account:

  • all of Part 6 – Information Requirements for Payment Services; and 
  • the following provisions of Part 7:
    • Regulation 66(1) – charges for the Bank performing its obligations in relation to payment services 
    • Regulations 67(3) and (4) – payer’s consent to a payment transaction and withdrawal of that consent
    • Regulation 79 – refunds for payment transactions initiated by or through a payee
    • Regulation 80 – requests for refunds for payment transactions initiated by or through a payee
    • Regulation 83 – revocation of a payment order
    • Regulation 94 – bank’s liability for charges and interest in respect of incorrectly executed transactions.

In addition Santander seeks agreement that the period within which it must be notified of unauthorised or incorrectly executed payment transactions under Regulation 74(1) be reduced from 13 months to 2 months.  

The changes to implement the Corporate Opt-Out as set out above will take effect from 15th April 2021 and by continuing to use your account after this date, you accept this change and agree these Regulations will not apply.

GBP Corporate Notice Accounts

Introduction of a Notice Reversion rate

With effect from 1 April 2021, we’re introducing a Notice Reversion rate for our GBP corporate notice accounts. This means that for any instruction we receive from you on or after 1 April 2021 to withdraw funds from your notice account, the credit interest rate applicable on the amount you wish to withdraw will be reduced for the duration of the notice period. However credit interest at the higher rate will continue to be earned on any balance remaining in your account not subject to notice of withdrawal.

Withdrawal requests on GBP corporate notice accounts

In future we must receive any notice from you to make a withdrawal from your GBP corporate notice account by 1pm on a working day. If we don’t receive notice before this time then the notice period will begin on the next working day. You will also be able to cancel any notice of withdrawal you have given us as long as we receive the notice of cancellation at least two working days before the end of the notice period. We will usually contact you at least two working days prior to the payment date to confirm the payment is still needed and to complete our security checks before releasing the payment.  

Removal of Products and Services

Removal of foreign currency cash services

We’ve removed reference to the paying in of foreign currency cash (notes and coins) as we no longer offer this service.

Cash Services and use of Nominated Offices/Post Office

We’ve removed all conditions and definitions relating to the Provision of Cash Services and use of Nominated Offices/Post Office as we no longer offer these services and facilities.

Depositing Cheques by post

As a consequence of removing Cash Services and the use of Nominated Offices you will now only be able to pay in cheques by posting them to us. GBP cheques should be sent to us at PO Box 12644, Harlow, CM20 9QH. Foreign currency cheques should continue to be sent to our Bootle address.

Time Deposits and Partial Withdrawal Time Deposits

We have removed references to account based Time Deposits and Partial Withdrawal Time Deposits, which will no longer be available. Term Deposits are unaffected.

Current Account Switch Service (CASS)

We’ve removed conditions about the right to use CASS as this service is not available to customers with a turnover of more than £6.5million.

Other changes we’re making at the same time

The definition of insolvent

We’ve included a definition of “insolvent”, so that it’s clear that where we set out the consequences of your being insolvent (such as our right to close your account), you know when this will happen.

Removal of cancellation rights

We’ve removed your right to cancel an account within 14 days of account opening. This is not normally a right given to customers with a turnover of more than £6.5million.

Consequences of negative interest rates being introduced

Our Terms and Conditions already give us the right to introduce negative interest rates or fees or charges if interest rates (including any External Reference rate) turn negative. However we’ve now set out how we may debit any interest charged at a negative rate or other fee or charge should we introduce this.

Charges for transactions on the last day of the charging period

We’ve clarified that when there are transactions on your account on the last day of a charging period and that day is a Sunday, you’ll be invoiced for any transaction charges relating to those transactions on the invoice for the next charging period. You’ll still continue to earn interest on payments made into your account on that day.

Debit card transactions in a foreign currency

We’ve explained how you can find out the exchange rate used to convert foreign currency transactions into sterling when you use your debit card and how the costs compare to exchange rates used by the European Central Bank where transactions are in an EEA currency.

Changing definitions and other consequences of the UK leaving the European Union (“EU”).

We’ve updated the definitions of “EEA payment”, “International payment” and “SEPA” so that it’s clear that the UK is now outside of the EEA. The Regulations governing payments processing between banks have changed now that the UK has left the EU but we are not changing our payments processing in any way. However other banks in the EEA may treat some payments received from or made to us differently, for example the other bank (or any intermediary bank) may charge or deduct a fee for receiving or sending a payment. So the amount received by you might be less than you thought you would receive or amount received by the beneficiary may be less than you send. Even when we have complied with our obligations under the Regulations in making a payment to an EEA beneficiary bank, that beneficiary bank may in future treat the payment differently, for example in how quickly it makes the payment available to the beneficiary and how much assistance it provides if there are any issues with the payment.     

Your account is not transferable

We’ve clarified what this Condition means where it appears in the Terms and Conditions.

Governing law and jurisdiction

Your Terms and Conditions are governed by English law. Previously if you had applied for a product or service in Scotland or Northern Ireland the courts of Scotland or Northern Ireland respectively would have had jurisdiction to hear any disputes relating to your Terms and Conditions. In future only the courts of England and Wales will have jurisdiction to hear disputes, wherever you had applied for your product or service.

What if you’re not happy with the changes to your Terms and Conditions?

If you accept these changes you don’t need to do anything, as they’ll happen automatically on the dates set out above as relevant. If we don’t hear from you before the relevant date, we’ll assume that you accept the changes. 

If you don’t accept these changes you can also close your account at any time before they take effect  without additional charge by contacting your Relationship Director or your usual customer service contacts. However the relevant notice period will apply if you’re closing your GBP corporate notice account. Please note that you’ll need to pay any outstanding charges before closing your account.