In a statement released on Saturday, the Palace confirmed the pair will be required to “step back from Royal duties, including official military appointments,” and will no longer receive public funds for royal duties.
According to the statement, the Sussexes will not use the royal titles His Royal Highness and Her Royal Highness, as they are no longer working members of the Royal Family, and will repay money used to refurbish Frogmore Cottage, which will remain their family home in the U.K.
Harry will remain a prince and the couple will keep their titles of Duke and Duchess of Sussex.
“With the Queen’s blessing, the Sussexes will continue to maintain their private patronages and associations,” the statement reads.
While the pair can no longer formally represent the Queen, the Palace said they have “made clear that everything they do will continue to uphold the values of Her Majesty.”
In a statement, Queen Elizabeth II said the decision comes following “months of conversations and more recent discussions.”
Harry, 35, and his American wife, former actress Meghan, 38, sparked a crisis in the British monarchy this month by announcing they wanted to reduce their royal duties and spend more time in North America, while also becoming financially independent.
In the statement, Queen Elizabeth II said she was “pleased” they were able to find a “constructive and supportive way forward.”
“Harry, Meghan and Archie will always be much loved members of my family,” she said in the statement. “I recognise the challenges they have experienced as a result of intense scrutiny over the last two years and support their wish for a more independent life.”
“It is my whole family’s hope that today’s agreement allows them to start building a happy and peaceful new life,” she added.
Buckingham Palace did not disclose who will pay for the couple’s currently taxpayer-funded security, saying it does not comment “on the details of security arrangements.”
According to the palace, the new model will take effect in the spring of this year.
Earlier this week, Queen Elizabeth II confirmed that the couple would be splitting their time between the U.K. and Canada.
In an interview with Global News, Prime Minister Justin Trudeau said as of Monday there had been no conversations around the couple’s move to Canada.
“There will be many discussions to come on how that works,” he said.
“But there’s still a lot of decisions to be taken by the Royal Family and by the Sussexes themselves as to what level of engagement they choose to have and these are things that we are supportive of.”
-With files from Global News’ Laura Hensley, Reuters and The Associated Press.