The European Banking Authority has published draft amended Regulatory and Implementing Technical Standards regarding the exercise of credit institutions’ rights to freedom of establishment and freedom to provide services (i.e. passporting rights) under the Capital Requirements Directive. The EBA reviewed the original Technical Standards in 2018 and found several areas for improvement that would enhance the quality and consistency of passport notifications and the ability of EU national regulators to use them. It has produced the draft amended standards with a view to updating the information requirements that must be notified by a credit institution to its home national regulator. Responses to the consultation should be submitted by February 13, 2020.

The material amendments to the technical standards are:

• A requirement to indicate the intended start date of each passported activity for both branch and services passport notification as accurately as possible, rather than just for the core business activities;
• A requirement to express any differentiation between an initial branch notification and any subsequent notifications of changes in the branch particulars;
• Greater granularity of detail in branch financial plans, including assumptions of forecasts;
• Where there is an intended termination of a branch, a statement from an external auditor attesting that the credit institution no longer holds deposits or repayable funds from the public; and
• A requirement that national regulators communicate relevant data on a credit institution’s own funds, including amount, composition and requirements, at both an individual and consolidated level when notifying the national regulator of a host member state of the credit institution’s passport notification.

View the EBA's consultation paper on the draft amended technical standards.

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