EBA is consulting on amendments to the regulatory and implementing technical standards on passport notification. The amendments to the two respective regulations are aimed to improve the quality and consistency of information to be provided by a credit institution notifying its home competent authorities when it intends to open a branch or provide services in another member state and to improve the communication between home and host authorities. The consultation runs until February 13, 2020. The revised draft regulatory and implementing standards will be submitted to EC for endorsement, before being published in the Official Journal of the European Union.
The two sets of technical standards on passport notification were originally enacted by EC under the Commission Delegated Regulation (EU) No 1151/2014 and the Commission Implementing Regulation (EU) No 926/2014. The amendments relate to both the information requirements set out in Regulation 1154/2014 and to the forms and templates contained in the Annexes to Regulation 926/2014.
The proposed amendments focus on the quality and clarity of information to be provided by credit institutions to their home competent authorities in the passport notification as well as to the communication between home and host authorities. The material changes include the indication of the date of the intended start of each activity for which the passport notification is submitted; the assumptions underpinning the financial forecasts; and the provision of a statement by an external auditor, in case of a planned termination of a branch, that the credit institution no longer holds deposits nor repayable funds from the public through the branch. The amendments are intended to allow the competent authorities a more accurate and complete picture of institutions’ planned activities and the arrangements to carry on these activities. Such information is considered and it enables and allows competent authorities to perform a complete and accurate assessment of the notification.
Furthermore, to improve the efficiency of communication between the credit institution and its home authority as well as between home and host authorities, certain minor amendments have been made in the forms and templates such as update of legal references; clearer differentiation—applicable to branches only—between first notification and notification of changes; addition of a credit institution’s national reference code, as available in the credit institution register maintained by EBA, and of the Legal Entity Identifier, or LEI, where available; indication of the competent department; and the relevant e-mail address.
Comment Due Date: February 13, 2019
Keywords: Europe, EU, Banking, Implementing Technical Standards, Regulatory Technical Standards, Passporting Regime, EBA
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