Luxembourg's financial watchdog, the CSSF, has recalled that banks must have contingency plans in place in case of a no-deal Brexit by the end of the year.
Via the CSSF, the European Banking Authority (EBA) published this month a statement reminding financial institutions affected by the end of the transition period to finalise the full execution of their contingency plans before the end of this period on 31 December 2020.
Banks are reminded 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 should 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, visit the EBA website at: eba.europa.eu/eba-reminds-financial-institutions-need-readiness-view-brexit-transition-period-ending-31-december.
