EC, ESMA, and SRB Issue Statements on Withdrawal of UK from EU
EC, ESMA, and SRB published statements on the withdrawal of UK from EU. The terms of the Withdrawal Agreement stipulate that UK representatives will no longer be permitted to participate in the EU institutions, agencies, or other bodies, and their governance structures, except where exceptionally justified. By virtue of the Withdrawal Agreement, EU law will continue to apply to the UK, as if it were a member state, during the transition period from February 01, 2020 to December 31, 2020.
EC mentioned that, on February 03, it will adopt and present draft negotiating directives for the future relationship negotiations with UK to the Council. EC also published a joint press statement by the EC President Ursula von der Leyen on the withdrawal of UK from EU. Additionally, EC published questions and answers (Q&As) on withdrawal of UK from EU.
ESMA published a statement to clarify issues related to the governance and the reporting obligations for UK entities from February 01, 2020, following the withdrawal of UK from EU. From February 01, the UK FCA will no longer be a member of the Board of Supervisors of ESMA or participate in any of the other governance bodies of ESMA. During the transition period, ESMA will continue to directly supervise the registered credit rating agencies, trade repositories, and securitization repositories established in the UK. In the coming eleven months, ESMA will continue to monitor the application of EU law to/in the UK and will closely monitor developments in preparation for the end of the transition period.
In its statement, SRB notified that, during the transition period, the MREL-eligible liabilities governed by UK law will be treated as if they were governed by a member state law. After that, they will be treated as third-country liabilities and may need additional clauses. The impact of Brexit will be taken into consideration in the resolution planning work of SRB, for the 2020 resolution planning cycle and beyond.
Related Links
Keywords: Europe, EU, UK, Banking, Securities, Brexit, Withdrawal Agreement, Transition Period, Q&A, Credit Rating Agencies, EC, ESMA, SRB
Previous Article
FED Updates Draft Form and Guidance for Reporting Under Volcker RuleRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
