The United Kingdom has left the European Union on 31 January 2020. Under the Withdrawal Agreement reached between the EU and UK, the EU legislation will continue to apply in the UK during the transition period that is due to last until 31 December 2020. After the end of the transition period EU law will stop to apply in the UK from 1 January 2021 and from that date provision of financial services from UK authorised institutions to EU customers on a cross-border basis (passporting) will no longer be possible.
This page provides an overview of all the communications EBA has issued in relation to Brexit.
This statement clarifies previous EBA statements regarding Brexit for the benefit of consumers across the EU. In particular, the EBA explains the impact that the end of the transition period will have on them by clarifying the level of preparedness required from UK financial institutions, the changes that EU-based payment service providers will need to make when facilitating cross-border payments to the UK, the access to accounts and deposits held in the UK, as well as how to obtain more information.
In November 2020 in a follow up communication regarding readiness for the end of transition period, the EBA recalled the readiness messages and provided additional details in the area of payments, in particular regarding the revocation of eIDAS certificates and the need to provide additional details regarding the payers and the payee for the cross-border payments between the EU and UK. In this communication the EBA also made the point for large corporate and institutions customers, considering checking with their UK-based financial service providers to confirm whether they have obtained all necessary authorisations from EU competent authorities to continue to providing services to EU-based customers after the end of the transition period.
In July 2020, the EBA stressed in a communication on the need for the institutions to finalise their preparations for the end of the transition period noting that the provision of cross-border services (passporting) from the UK into the EU will no longer be possible without a proper authorisation. The EBA recalled on the need for institutions to continue to ramp up EU operations and move towards their target operating models agreed with supervisors as part of their authorisations.
In October 2019, in a dedicated communication, the EBA stressed the need for financial institutions to ensure the execution of their contingency plans and their establishment in the EU in accordance with the plans agreed with their respective competent authorities. Furthermore, the EBA stressed the need for Brexit-affected institutions to ensure adequate communication of Brexit-related risks, plans and changes to their EU customers.
In March 2019, the third EBA Brexit-related Opinion focused on deposit protection issues and the need to ensure adequate coverage and protection of customers’ deposits held in branches of UK credit institutions in the EU, as well as the provision of adequate information to such depositors.
In June 2018, in the Opinion on preparations for the withdrawal of the United Kingdom from the EU, the EBA focused on the risks posed by the seeming lack of adequate contingency preparations by financial institutions with a view to ensure that they (1) establish whether they have direct or indirect exposures to the UK, and (2) consider the risks concerned, and associated mitigating action and contingency plans, and duly execute their contingency plans.
In October 2017, the Opinion on issues related to the UK withdrawal from the EU focused on the application of the EU prudential framework for the financial institutions affected by such withdrawal, in particular in relation to (i) authorisations; (ii) internal models (iii) internal governance, outsourcing, risk transfers and ‘empty shell’ companies (iv) resolution framework; and (v) deposit guarantee schemes.