EBA Reminds Firms to Execute Contingency Plans for Brexit Transition
EBA is reminding the impacted financial institutions to finalize the full execution of their contingency plans in accordance with the conditions agreed with the relevant competent authorities before the end of transition period on December 31, 2020. The UK financial institutions offering services to EU customers should ensure that they have obtained the necessary authorizations from EU competent authorities and effectively established themselves before the end of transition period; these institutions should also provide adequate information to their EU customers regarding the availability of services after the end of the transition period.
To continue to provide services in EU, the UK-based financial institutions need to finalize their authorizations from EU competent authorities and fully establish their EU-based operations in accordance with the conditions and establishment plans agreed with the relevant competent authorities. EBA is reminding financial institutions about the need to have clearly articulated and appropriate booking arrangements, to meet the outsourcing requirements as provided in the EBA guidelines on outsourcing arrangements and to not outsource activities to such an extent that they operate as empty shell companies (as also provided in the EBA opinion on preparations for the withdrawal of UK from EU). Despite significant action by many financial institutions as well as the steps taken by EU public authorities to address financial stability concerns, even the institutions that have already obtained all necessary authorizations and permissions should remain vigilant. In this regard, financial institutions are also reminded to complete the necessary actions regarding the re-papering of contracts with their EU clients.
Furthermore, EBA reiterates that eIDAS certificates issued to the UK-based account information service providers and payment initiation service providers should be revoked and no longer supported. Payment service providers should include additional details regarding the payer and the payee for the transfer of funds between EU and UK. EBA also reminds institutions to ensure adequate communication regarding their preparations and possible changes to any affected EU customers.
Related Link: Press Release
Keywords: Europe, EU, UK, Banking, PMI, Contingency Plans, Brexit Transition, EBA
Previous Article
OCC Publishes Semiannual Risk Perspective for Fall 2020Related Articles
EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models
The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.
BIS Hub Updates Work Program for 2022, Announces New Projects
The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.
US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule
Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)
EIOPA Consults on Review of Securitization Framework in Solvency II
The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.
UK Authorities Issue Regulatory and Reporting Updates for Banks
The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.
BaFin Consults on Resolvability Requirements for Resolution Planning
The Federal Financial Supervisory Authority of Germany (BaFin) proposed to amend the “Capital Investment Conduct And Organization Ordinance” and issued a draft circular on the minimum resolvability requirements for resolution planning.
EBA Consults on Certain Standards and Guidelines Under CRR and BRRD
The European Banking Authority (EBA) proposed guidelines, for the resolution authorities, on the publication of the write-down and conversion and bail-in exchange mechanic, with the comment period ending on September 07, 2022.
OJK Publishes Regulatory Updates for Financial Sector Entities
The Financial Services Authority of Indonesia (OJK) is strengthening cooperation with the Australian Prudential Regulation Authority (APRA) and the Japanese Financial Services Agency (JFSA)
EU Publishes Rules on DLT and Data Governance
The European Parliament and the Council published Regulation 2022/868 on European data governance (Data Governance Act).
EBA Publishes Phase 2 of Reporting Framework 3.2
The European Banking Authority (EBA) published phase 2 of its reporting framework 3.2. The technical package supports the implementation of the updated reporting framework by providing standard specifications