European Banking Authority Publishes Amended Draft Technical Standards for Passport Notifications

The European Banking Authority has published amending draft Regulatory Technical Standards and Implementing Technical Standards on passporting notifications under the fourth Capital Requirements Directive. CRD4 requires an EU bank wishing to establish a branch in another EU Member State to notify the national regulator of its home Member State of certain information. In the event of any changes in the information supplied, the relevant bank must notify the national regulators of both the home and host Member State at least one month prior to the change coming into effect. In 2014, the EBA produced RTS on the information to be provided to the national regulators in connection with the exercise of these passporting rights, and ITS on the forms, templates and procedures for such notifications.
 
The EBA has published the final draft of the RTS and ITS amending the original technical standards. The changes are intended to increase the quality and consistency of the information provided. In particular, they require banks to:
 

• indicate the intended start date of each of their intended passporting activities as accurately as possible, which change will apply for both services and branch notifications (currently banks are only required to indicate their core activities);
• increase the granularity of the financial plan that they submit with their notification of intention to establish a branch, which must now include assumptions underpinning forecasts; and
• provide additional information in the case of termination of the branch, stating the measures that have been taken to ensure the bank will no longer hold deposits or repayable funds from the public through the branch after the termination.

View the EBA's draft amending technical standards.

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