The Prudential Regulation Authority has published a letter to CEOs and branch managers of all banks, insurers and designated investment firms undertaking cross-border activities between the UK and the remainder of the EU, including branches of EU firms operating in the UK, concerning the need for contingency planning for the UK's withdrawal from the EU. The PRA has requested that each firm provides, by July 14, 2017, written confirmation that it has considered its contingency plans, a short summary of the plans, assurance that the plans address an appropriately wide range of scenarios and whether any new authorization or regulatory engagement is required. EU branches operating in the UK which have significant retail or SME transactional deposits should consider, among other things, whether they need to convert their operation into a UK subsidiary. The Financial Policy Committee will be overseeing the plans to mitigate any risks to financial stability.
View the letter.
