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
EIOPA Consults on Non-Life Underwriting and Pricing for Climate RiskRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
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.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
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.
