EBA published an opinion on issues related to Brexit to ensure consistent application of EU legislation to businesses seeking to establish, or enhance, their EU27 presence to retain access to the EU Single Market. The opinion aims to provide greater certainty to firms and to ensure a level playing field. A report that is appended to the opinion sets out the detailed analysis underlying this guidance.
In the opinion, EBA addresses a number of relevant policy topics related to authorizations, the prudential regulation and supervision of investment firms, internal models, outsourcing, internal governance, risk transfers via back-to-back and intragroup operations, and resolution and deposit guarantee scheme issues. In each area identified by EBA, the opinion sets out some key principles, followed by specific detailed technical guidance addressed to firms and authorities. The opinion is focused on the period prior to the departure of the UK. The overarching principles underlying all of the guidance in the opinion are that:
- The existing legal and regulatory framework should be applied consistently and harmoniously throughout the EU, while avoiding the competition on regulatory or supervisory standards
- Authorities should avoid imposing an unnecessary regulatory burden on firms, while regulatory standards, which have always applied, should be maintained
- Cooperation and coordination between supervisors and between supervisors and resolution authorities is important, both now and in the future
EBA will monitor practical application of the opinion by authorities and will continue its policy and risk analysis work in relation to the challenges posed by Brexit.
Related Link: Opinion on Brexit Issues (PDF)
Keywords: Europe, EU, Banking, Brexit, Single Market, Opinion, EBA
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