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
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