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.
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Keywords: Europe, EU, Banking, Brexit, Opinion, Contingency Planning, Call for Action, EBA
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