EBA Calls for More Action in Brexit-Related Communication to Customers
In the context of Brexit, EBA is reminding affected financial institutions to maintain their efforts in effective contingency planning and to increase their efforts in communicating to customers. EBA urges such institutions to take its Opinion, dated June 2018, into careful consideration and to swiftly proceed with advising customers on the specific implications stemming from the UK withdrawal from the EU.
In the follow-up monitoring of the June 2018 Opinion on financial institutions' preparedness for the UK withdrawal from the EU, EBA has observed continued progress in contingency planning. However, little evidence exists on effective communications from financial institutions to their customers on how they may be affected by the UK withdrawal and on any relevant actions undertaken by such institutions as part of their contingency planning that may affect those customers' contractual or statutory rights. EBA is, therefore, calling on all financial institutions affected by the UK withdrawal from EU, directly or indirectly, to take the EBA June Opinion into careful consideration. On that basis, EBA calls on financial institutions to engage with their customers and provide adequate information on the risks and mitigating measures being taken. EBA urges financial institutions to engage with their customers on this as soon as possible, providing the customers with at least the information specified in the EBA June 2018 Opinion. EBA also notes that, the customers that have concerns about whether they may be impacted by the UK withdrawal from the EU and that have not been contacted by their financial service providers by the end of 2018 might wish to contact the financial institutions directly.
The June 2018 Opinion of EBA focused on the risks posed by the seeming lack of adequate contingency preparations by financial institutions, with a view to ensure that they establish whether they have direct or indirect exposures to the UK and consider the risks concerned, along with the associated mitigating action and contingency plans.
Related Links
Keywords: Europe, EU, Banking, Brexit, Opinion, Contingency Planning, Call for Action, EBA
Previous Article
EBA Finalizes Guidelines on Disclosure of Non-Performing ExposuresRelated Articles
APRA Updates Validation and Derivation Rules in September 2020
APRA updated the lists of the Direct to APRA (D2A) validation and derivation rules for authorized deposit-taking institutions, insurers, and superannuation entities.
EC Proposes Frameworks for Crypto-Assets and Operational Resilience
EC adopted a package that includes the digital finance and retail payments strategies and the legislative proposals for regulatory frameworks on crypto-assets and digital operational resilience.
ECB Publishes Opinion on Proposals to Amend Securitization Framework
ECB published an opinion (CON/2020/22) on proposals for regulations amending the securitization framework of EU, in response to the COVID-19 pandemic.
FCA Consults on Regulation of International Firms in UK
FCA is consulting on its approach to the authorization and supervision of international firms operating in UK.
MAS Amends Notice on Capital Adequacy Requirements of Banks
MAS published amendments to Notice 637 on the risk-based capital adequacy requirements for reporting banks incorporated in Singapore.
FCA to Begin to Move Firms to New Data Collection Platform RegData
FCA announced that it will move firms to RegData from Gabriel in the coming months in stages, based on the reporting requirements of firms.
ISDA Expects IBOR Fallbacks to be Effective by End of January 2021
ISDA issued a letter to regulators to flag that it now expects the supplement to the 2006 ISDA Definitions and the Interbank Offered Rate (IBOR) Fallbacks Protocol to be effective around mid- to late-January 2021.
APRA Reviews Repayment Deferral Plans, Identifies Best Practices
APRA has concluded its review of the comprehensive plans of authorized deposit-taking institutions for the assessment and management of loans with repayment deferrals.
ESAs Assess Risks to Financial Sector After COVID-19 Outbreak
ESAs (EBA, EIOPA, and ESMA) published the first joint report that assesses risks in the financial sector since the outbreak of the COVID-19 pandemic.
BoE Confirms Withdrawal of COVID Corporate Financing Facility
BoE and HM Treasury confirmed that the COVID Corporate Financing Facility (CCFF) will close for new purchases of commercial paper, with effect from March 23, 2021.
