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 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.
EP Reaches Agreement on Corporate Sustainability Reporting Directive
The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).
PRA Consults on Model Risk Management Principles for Banks
The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.
EC Regulation Amends Standards for Calculating Credit Risk Adjustments
The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.
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.
EIOPA Issues Cyber Underwriting Proposal, Statement on Open Insurance
The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.
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.
BCBS Issues Climate Risk Principles while HKMA Expresses Its Support
The Basel Committee on Banking Supervision (BCBS) issued principles for the effective management and supervision of climate-related financial risks.