The EBA’s Brexit opinion follows similar opinions issued by the EBA’s sister authorities ESMA and EIOPA and provides a significant amount of detail on its expectations for supervisors and firms’ plans for restructuring in the context of Brexit. All of the ESAs’ opinions may be impacted by any provisions for financial services included in any trade agreement reached between the UK and EU. They are particularly important in providing clarity for firms seeking to understand how to plan for operations under any so-called ‘hard’ Brexit scenario.
As an opinion (rather than technical standard) the provisions in the document are not directly binding on EU supervisors (including the ECB) but they will provide an important framework for decisions made by EU authorities on firms’ Brexit plans.
In this Hot Topic, we summarise the most important aspects of the proposals, and their implications for financial services firms.