EU financial regulators highlight ‘Brexit fatigue’ risks
- Published: Friday, 13 September 2019 08:23
The latest report from the European Union's Joint Committee of the European Supervisory Authorities (ESAs) advises financial institutions to continue planning for business continuity in a no-deal Brexit scenario despite ‘Brexit fatigue’.
The report, Risks and Vulnerabilities in the EU Financial System, says that although the Brexit date has been postponed until October 31st, 2019, the risk of a no-deal Brexit has not yet subsided. Financial institutions should continue to plan for a no-deal Brexit scenario.
“The need to prepare for the impact of a no-deal Brexit on financial activities continues to require attention from the public and private sector in light of the postponement of the Brexit date. Although there seems to be a ‘Brexit fatigue’ in the financial sector, supervisors continue to encourage institutions to prepare contingency plans for a no-deal Brexit and have themselves set further steps in motion to minimise negative impact on financial markets,” states the report.
The report advises that:
“Financial institutions and supervisors should continue their work on contingency planning and assurance of business continuity in the case of a no-deal Brexit. Contingency plans should be implemented by 31 October 2019 at the latest. Considering the variety of measures undertaken by the ESAs and national supervisory authorities and other competent authorities, the industry in the EU should be well informed and prepared to manage risks from a micro-perspective.”
Read the report (PDF).