The EBA reminds financial institutions of the need for readiness in view of the Brexit transition period ending on 31 December 2020
On 9 November 2020 the European Banking Authority (EBA) published a communication reminding financial institutions affected by the end of the transition period to finalise the full execution of their contingency plans before the end of the transition period on 31 December 2020. The EBA reminds that from 1 January 2021, the provision of financial services from UK authorised institutions to EU customers on a cross-border basis will no longer be possible. If those UK entities wish to continue providing their services to EU customers, an authorisation from EU competent authorities as well as an effective establishment in the EU is required before the end of the transitional period. In this context, financial institutions shall ensure timely and adequate communication regarding their preparations and possible changes affecting the availability and continuity of the services they provide, or whether institutions plan to cease offering services to EU-based customers. In addition, market participants are advised that any eIDAS certificates issued to the UK-based account information service providers and payment initiation service providers should be revoked and no longer supported. Finally, payment service providers are required to provide additional information regarding the payer and the payee for the transfer of funds between the EU and the UK.
For more details, please see the EBA website at: https://eba.europa.eu/eba-reminds-financial-institutions-need-readiness-view-brexit-transition-period-ending-31-december