Opinion of the European Banking Authority on preparations for the withdrawal of the United Kingdom from the European Union

The CSSF would like to inform the public that on 25 June 2018 the European Banking Authority (EBA) published an opinion relating to the risks posed by a lack of preparation by financial institutions for the departure of the United Kingdom from the European Union (Brexit) in a scenario where no ratified Withdrawal Agreement would be in place by 30 March 2019.

In the opinion, the EBA asks competent authorities in charge of the supervision of credit institutions, investment firms, payment institutions and electronic money institutions, creditors and credit intermediaries to ensure that financial institutions:

• take immediate practical steps to prepare for Brexit; and
• duly inform their customers and consumers with whom they have contractual arrangements in place of the potential risks.

As such, the CSSF in its capacity as competent authority requires that less significant credit institutions (as defined in Article 2(7) of Regulation (EU) No 468/2014 of the European Centrale Bank (SSM Framework Regulation)), investment firms, payment institutions and electronic money institutions, lenders and credit intermediaries established in Luxembourg, take the measures prescribed in the EBA opinion. The CSSF will contact the institutions to ensure that the appropriate steps prescribed by the opinion are taken, except where such information has already been provided to the CSSF. Significant credit institutions (as defined in Article 2(16) of the SSM Framework Regulation) should refer, where appropriate, to the ECB’s instructions.

For more details, please see the EBA website at:

http://www.eba.europa.eu/-/eba-publishes-opinion-to-hasten-the-preparations-of-financial-établissements-for-brexit