EBA Communication on Brexit Preparations of Financial Institutions
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 Article
BIS and SNB Sign Agreement on Innovation Hub Center in SwitzerlandRelated Articles
EBA Examines Supervisory Practices, Issues Deposits Reporting Template
The European Banking Authority (EBA) published its annual report on convergence of supervisory practices for 2021. Additionally, following a request from the European Commission (EC),
EC Mandates ESAs to Propose Amendments to SFDR Technical Standards
The European Commission (EC) has issued two letters mandating the European Supervisory Authorities (ESAs) to jointly propose amendments to the regulatory technical standards under Sustainable Finance Disclosure Regulation or SFDR.
EC Consults on PSD2 and Open Finance; EU Reaches Agreement on DORA
The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.
US Agency Publications Address Basel, Reporting, and CECL Developments
The Farm Credit Administration published, in the Federal Register, the final rule on implementation of the Current Expected Credit Losses (CECL) methodology for allowances
SEC Extends Comment Period on Climate Risk Disclosures
The U.S. Securities and Exchange Commission (SEC) looks set to intensify focus on crypto-assets and cyber risk and extended the comment period on the proposed rules to enhance and standardize climate-related disclosures for investors.
APRA Reduces Committed Liquidity Facility, Issues Other Updates
The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility and issued an update on the operational preparedness for zero and negative market interest rates.
EIOPA Responds to Stakeholder Views on Blockchain in Insurance
The European Insurance and Occupational Pensions Authority (EIOPA) published a feedback statement on the responses received to the consultation on blockchain and smart contracts in insurance.
HKMA Announces Decisions on CCyB and Loan Guarantee Scheme
The Hong Kong Monetary Authority (HKMA) announced that the applicable jurisdictional countercyclical capital buffer (CCyB) ratio for Hong Kong remains unchanged at 1.0%
CMF Consults on Basel Rules, Presents Roadmap to Address Climate Risks
The Commission for the Financial Market (CMF) in Chile published capital adequacy ratios (as of February 2022, January 2022, and December 2021) for 17 banks and for the banking system.
PRA Issues Statement on NPEs and Policy on Trading Activity Wind-Down
The Prudential Regulation Authority (PRA) issued a statement on the European Banking Authority (EBA) guidelines on management of non-performing exposures (NPEs) and forborne exposures.