EBA published a communication on the remaining issues related to the preparation by financial institutions for Brexit. While significant progress has been made in the implementation of contingency plans for the event that UK withdraws from EU without a ratified withdrawal agreement on November 01, 2019, financial entities and competent authorities must guard against complacency in their preparations. EBA urges that effective contingency planning efforts must continue to ensure that assets, appropriate staff, and data are in place to support relevant authorizations and to ensure that adequate customer communications are made.
EBA previously communicated on preparations in its October 2017 and June 2018 Opinions. These communications focused on the risks posed by the seeming lack of adequate contingency preparations by financial institutions. The October 2017 Opinion contained detailed principles about authorizations; internal models; internal governance, outsourcing, risk transfers, and "empty shell" companies; and resolution and deposit guarantee schemes. EBA advises financial institutions to adhere to these principles in their preparations. EBA also notes that in case any customers have concerns about whether they may be impacted by the UK withdrawal from the EU and have not yet been contacted by their financial service provider, they should contact their financial institutions directly. Meanwhile, EBA and competent authorities will continue to monitor the final stages of contingency planning and customer communication by financial institutions and how they and their customers may be affected by the Brexit without a ratified withdrawal agreement.
Related Links: Press Release
Keywords: Europe, EU, Banking, Brexit, Communication, Contingency Planning, EBA
Previous ArticleBIS and SNB Sign Agreement on Innovation Hub Center in Switzerland
FCA and PRA in the UK, FED in the US, and the authorities in Singapore have fined Goldman Sachs for risk management failures in connection with the 1Malaysia Development Berhad (1MDB).
BCBS announced that OSFI and the Bank of Canada hosted the 21st International Conference of Banking Supervisors (ICBS) virtually on October 19-22, 2020.
FCA proposed guidance on how firms should continue to seek to help customers who hold insurance and premium finance products and may be in financial difficulty because of COVID-19, after October 31, 2020.
EBA issued an opinion on prudential treatment of the legacy instruments as the grandfathering period nears an end on December 31, 2021.
ESRB published the fifth issue of the EU Non-bank Financial Intermediation Risk Monitor 2020 (NBFI Monitor).
HM Treasury announced that the new Financial Services Bill has been introduced in the Parliament.
APRA announced that it has increased the minimum liquidity requirement of Bendigo and Adelaide Bank for failing to comply with the prudential standard on liquidity.
PRA published the consultation paper CP17/20 to propose changes to certain rules, supervisory statements, and statements of policy to implement elements of the Capital Requirements Directive (CRD5).
US Agencies adopted a final rule that applies to advanced approaches banking organizations and aims to reduce interconnectedness in the financial system as well as to reduce contagion risks associated with the failure of a global systemically important bank (G-SIB).
US Agencies (FDIC, FED, and OCC) adopted a final rule that implements the net stable funding ratio (NSFR) for certain large banking organizations.