ESMA Reminds Firms to Submit Authorization Applications Before Brexit
ESMA issued a Public Statement to raise the awareness of all market participants on the importance to prepare for the possibility of no agreement in the context of the UK withdrawing from EU (Brexit). As there is no assurance that a transition period will be agreed upon, entities need to consider the scenario where a hard Brexit would take place on March 30, 2019. ESMA emphasizes the importance of the timeline to submit requests for authorization to the national competent authorities and to ESMA for the regulated entities wishing to relocate in the context of Brexit.
On March 30, 2019, firms must have a fully authorized legal entity located in the EU27 to continue providing services in the EU27. ESMA has seen an increase in the number of authorization requests submitted to EU27 authorities. Against this background, ESMA urges entities wishing to relocate to the EU27 to submit their application for authorization as soon as possible to allow it to be processed before March 29, 2019. Some national competent authorities have already been clear to entities that, unless an application is received in the month of June/July, there is no guarantee that authorization will be achievable before March 29, 2019. ESMA reminds entities that the time required to analyze an authorization request depends primarily on the quality of the application file and encourages entities to be complete and accurate in their filing for authorization. ESMA invites entities to contact the relevant national competent authorities, or ESMA in the case of CRAs/trade repositories, as soon as possible in case they have not yet done so.
Related Links
Keywords: Europe, EU, Banking, Securities, Insurance, Brexit, CRAs, Authorization Applications, ESMA
Related Articles
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
BIS Bulletin Examines Cognitive Limits of Large Language Models
The use cases of generative AI in the banking sector are evolving fast, with many institutions adopting the technology to enhance customer service and operational efficiency.
ECB is Conducting First Cyber Risk Stress Test for Banks
As part of the increasing regulatory focus on operational resilience, cyber risk stress testing is also becoming a crucial aspect of ensuring bank resilience in the face of cyber threats.
EBA Continues Momentum Toward Strengthening Prudential Rules for Banks
A few years down the road from the last global financial crisis, regulators are still issuing rules and monitoring banks to ensure that they comply with the regulations.
EU and UK Agencies Issue Updates on Final Basel III Rules
The European Commission (EC) recently issued an update informing that the European Council and the Parliament have endorsed the Banking Package implementing the final elements of Basel III standards