EBA欧洲银行-EBA-RTS-2013-08-28RTS-on-Passport-Notifications29_19页_622kb

EBA FINAL Draft Regulatory Technical Standards on Passport Notifications

Executive Summary

The EBA has finalised draft Regulatory Technical Standards (RTS) under Articles 35, 36, and 39 of Directive 2013/36/EU (the CDR), which governs the access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms. These RTS aim to specify the information that credit institutions must provide when exercising the right of establishment or the freedom to provide services across the European Economic Area (EEA). The standards are designed to enhance transparency, ensure clarity, and improve supervisory cooperation between home and host Member States.

The draft RTS include new requirements, such as the indication of core business activities and intended start dates in the host Member State, as well as the submission of a three-year financial plan. They also address the information needed for the planned termination of a branch, including details on the management of customer relationships.

These RTS are based on the 'Guidelines for passport notifications' previously developed by the Committee of European Banking Supervisors (CEBS), now replaced by the EBA. They should be read in conjunction with the draft Implementing Technical Standards (ITS) that provide standard forms and procedures for passport notifications.

Core Content and Key Provisions

1. Branch Passport Notification

• Must include:
  • Name and address of the credit institution and branch.
  • Programme of operations, including:
    • Main objectives and business strategy.
    • List of activities from Annex I of Directive 2013/36/EU.
    • Core business activities and their intended start dates.
    • Description of target customers and counterparties.
  • Structural organisation of the branch, including:
    • Organisational and legal reporting lines.
    • Governance arrangements and internal controls.
    • Risk management, liquidity risk, and outsourcing controls.
  • For investment services:
    • Safeguarding client money and assets.
    • Compliance with relevant obligations.
    • Internal code of conduct and complaint handling.
  • Professional experience of branch managers.

2. Change in Branch Particulars Notification

• Includes:
  • Updates to previously submitted information.
  • Specific information for planned branch termination:
    • Responsible persons for the termination process.
    • Estimated schedule for termination.
    • Process for terminating business relations with customers.

3. Services Passport Notification

• Requires:
  • Activities to be carried out for the first time in the host Member State.
  • Core services and their intended start dates.

4. General Requirements

• All notifications must be submitted in accordance with the CDR.
• The RTS aim to improve supervision, enhance legal clarity, and reduce compliance burdens.

Main Objectives

• Enhance financial stability by ensuring a harmonised and complete set of information for cross-border supervision.
• Enhance safeguarding of depositor interests through better understanding of credit institutions’ activities in host Member States.
• Ensure international competitiveness by creating a level playing field and reducing compliance costs.
• Prevent regulatory arbitrage by standardising the information required across the EU.
• Reduce compliance burden for credit institutions.
• Enhance supervisory cooperation and convergence by providing clear and consistent information requirements.

Key Information

• The RTS are binding and directly applicable in all EU Member States.
• They are based on existing guidelines and aim to improve clarity and consistency.
• The three-year financial plan and core activities are new requirements.
• The termination process is now included in the change notification framework.
• The EBA conducted a public consultation and considered feedback in finalising the RTS.

Accompanying Documents

4.1 Cost-Benefit Analysis

• Introduction: The EBA's guidelines were agreed upon by EU Member States, and the RTS build on these.
• Procedural Issues: The EBA consulted competent authorities on the policy options and approaches.
• Implementation Level:
  • 79% of competent authorities reported full implementation of existing guidelines.
  • 21% reported partial implementation (75%).
• Current vs. Future Framework:
  • The draft RTS expand the scope of information required for branch establishment, changes, and termination.
  • They are assessed to have similar scope for services passport notifications.
• Policy Options:
  • Option I: Based on existing guidelines.
  • Option II: Developed from scratch.
• Incremental Benefits:
  • Improved clarity and quality of information for competent authorities.
  • More accurate and complete data for supervision.
• Incremental Costs:
  • Equal impact on competent authorities and credit institutions.
  • No significant costs for other stakeholders.

Conclusion

The EBA’s draft RTS aim to standardise passport notifications for credit institutions operating across the EEA, thereby improving transparency, supervisory cooperation, and legal clarity. They introduce new elements such as the requirement to specify core activities and intended start dates, and to provide a three-year financial plan. These standards are expected to enhance financial stability, protect depositor interests, and ensure a level playing field for EU credit institutions.