Final draft amending Regulatory Technical Standards and Implementing Technical Standards on Passport Notifications under Articles 35, 36 and 39 of Directive 2013/36/EU

Final draft amending Regulatory
Technical Standards and Implementing
Technical Standards on Passport Notifications under Articles 35, 36 and 39 of Directive 2013/36/EU

EBA/RTS/2020/06
EBA/ITS/2020/03
18 June 2020

FINAL DRAFT AMENDING RTS AND ITS ON PASSPORT NOTIFICATIONS Contents
1. Executive Summary 3
2. Background and rationale 5
3. Final draft amending regulatory technical standards 8
5. Accompanying documents 32
5.1 Cost‐benefit analysis / impact assessment 32
5.2 Feedback on the public consultation 36

FINAL DRAFT AMENDING RTS AND ITS ON PASSPORT NOTIFICATIONS

1. Executive Summary
   The Final Draft Paper deals with the review of two sets of technical standards on passport notification, developed by the EBA in accordance with the mandate set out in Articles 35, 36 and 39 of Directive 2013/36/EU as subsequently amended, and enacted by the European Commission under Commission Delegated Regulation (EU) No 1151/2014 and Commission Implementing Regulation (EU) No 926/2014. Since their entry into force, the two Commission Regulations have significantly contributed to the convergence of supervisory practices across the EU, smoothening passport notifications by credit institution and deepening the internal market. Practice however has shown the need for clarification as to the information to be provided by credit institutions in order to allow a better assessment of the passport notification and the credit institution’s arrangements to carry on the planned activities. The review of the two Regulations therefore aims at improving the quality and consistency of information to be provided by a credit institution notifying their home competent authorities when it intends to open a branch or provide services in another Member State, as well as the communication between home and host authorities. The amendments focus on the quality and clarity of the information to be provided by the credit institutions to their home competent authorities in the passport notification, as well as to the communication between home and host authorities. Such amendments relate to both the information requirements set out in Regulation 1151/2014 and to the forms and templates contained in the Annexes to Regulation 926/2014. The most material changes focus on the request to the credit institution to indicate in a manner as accurate as possible the intended start date of each activity for which the notification is submitted, rather than just of the core business activities as currently envisaged by the Regulations. Such change applies to both the branch and the services passport notification. This amendment aims at providing the competent authorities with a more accurate and complete picture of institutions’ planned activities and its arrangementsto carry them on, and it is considered a very relevant piece of information to allow competent authorities to perform a complete and accurate assessment of the notification. With regard to the establishment of branches, additional granularity has been included in relation to the financial plan. Assumptions underpinning forecasts are now expressly requested to be included in the notification. In respect of the branch planned termination, with a view to enhancing factual certainty and reliability a new requirement has been added to the communication to be made by the credit institution. It imposes the submission of a statement by the credit institution indicating the measuresthat have been or that are being undertaken to ensure that it will no longer hold deposits or repayable funds from the public through the branch after
   the latter termination.

FINAL DRAFT AMENDING RTS AND ITS ON PASSPORT NOTIFICATIONS Furthermore, in order to improve the efficiency of communication between the credit institution and its home authority as well as between home and host authorities, some minor amendments have also been made in the forms and templates such as update of legal references; clearer differentiation –applicable to branches only ‐ between first notification and notification of changes, addition of the credit institution’s national reference code as available in the credit institution register maintained by the EBA, and of the Legal Entity Identifier (LEI) where available, indication of the competent department and relevant email address.

FINAL DRAFT AMENDING RTS AND ITS ON PASSPORT NOTIFICATION
2. Background and rationale
2.1 Introduction and reasons for the review
Directive 2013/36/EU on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, as subsequently amended, sets out requirements concerning the exercise by credit institutions of the freedom of establishment and the freedom to provide services and mandates the EBA to develop regulatory technical standards (RTS) specifying the information to be notified pursuant to Articles 35, 36 and 39 of that Directive. The same provisions also mandate the EBA to develop implementing technical standards (ITS) in order to establish standard forms, templates and procedures for notifications performed pursuant to Articles 35, 36 and 39. The EBA has delivered such mandates by developing and submitting to the European Commission for endorsement both the Final Draft RTS and the Final Draft ITS on passport notifications on 13 December 20131 . The European Commission subsequently endorsed the RTS by enacting Commission Delegated Regulation (EU) No 1151/2014 and the ITS by enacting Commission Implementing Regulation (EU) No 926/2014. As recognized by the EBA Report on the peer review on the RTS published in July 20182 (‘Report’), the two Regulations have significantly improved the convergence of supervisory practices and smoothened the procedures for passport notifications, providing an important contribution to the effectiveness of the internal market. The Report has also identified several areas of desired modifications to the technical standards that would improve the quality and consistency of passport notifications and the ability of competent authoritiesto assessthese. Upon the competent authorities’ request, the EBA has therefore decided in accordance with Article 29(d) of Regulation (EU) 1093/2010 establishing the EBA, assubsequently amended, to revise both Commission Regulation 1151/2014 and Commission Regulation 926/2014, with a view to updating the information requirementsto be notified by the credit institution to the home competent authority. The ultimate goal of the technicalstandards review is to better clarify credit institutions’ information requirements in order to facilitate the accuracy, comprehensiveness and consistency of the supervisory assessment of both branch and services passport notifications. The amended binding technical standards also set out some minor drafting amendments aimed at improving the efficiency of communication with the home authority and between home and host authorities. The Consultation Paper at hand presents the amended RTS and ITS, reflecting these modifications.

1 The Final Draft RTS is available here https://eba.europa.eu/documents/10180/522312/EBA‐RTS‐2013‐ 08+%28RTS+on+Passport+Notifications%29.pdf/c03df2c9‐cd8c‐42e6‐b3fa‐1df65b156850; the Final Draft ITS is available here https://eba.europa.eu/documents/10180/522312/EBA+ITS+2013+05+%28ITS+on+Passport+Notifications%29.pdf/b584af51 ‐1c4c‐4301‐93ee‐9ed0e5f9b6ec . 2 EBA Peer Review on the RTS on Passport Notification, 10 July 2018, https://eba.europa.eu/documents/10180/2087449/Report+on+the+peer+review+of+the+RTS+on+passport+notifications.p df

FINAL DRAFT AMENDING RTS AND ITS ON PASSPORT NOTIFICATION
2.2 Material amendments
The material amendments focus on the quality and clarity of the information to be provided by the credit institutions to their home competent authority in the passport notification. They relate to both the information requirements set out in Regulation 1151/2014 and to the forms and templates contained in the Annexes to Commission Implementing Regulation (EU) No 926/2014. With regard to both branch and services notification, the following material amendments have been introduced:
‐ Requirement to indicate the intended start date of each passported activities, for both the branch and the services passport notification, in a manner as accurate as possible. Unlike the version currently in force, the draft amended technical standards require the specification of the ‘intended start date’ for each activity for which the notification is submitted rather than just for the core business activities. Practical experience has shown that the version in force, by allowing a sort of ‘global’ notification for all activities that the EU legal framework consents to be passported, on the one hand allows credit institutions to reach efficiencies by submitting only one notification, on the other hand does not allow the competent authorities to carry out the comprehensive and accurate assessment they are required to for each activity that is included in the notification. This amendment, therefore, aims at providing competent authorities with a more accurate and complete picture of institutions’ planned activities, and of their arrangements to carry them out and it is considered a very relevant piece of information to allow them performing an accurate assessment of the notification. Such proposed amendments are set out in the RTS and in Annexes I and V to the ITS. With regard to the branch notification only, the following amendments have been introduced:
‐ Express differentiation between the first notification and the notification of changes in the branch particulars. In case of notification of changes, the draft emended Annex I to the ITS expressly requires the credit institution to indicate only the information that has changed. In case of cessation of an activity previously notified, credit institutions have to indicate the date where the provision of a previously notified activity has ceased to be carried out. ‐ Additional granularity in relation to the financial plan in section 2.3.1 of Annex I. Assumptions of forecasts are expressly requested. ‐ Express requirement, in case of communication of the branch planned termination, of a statement by the credit institution indicating the measures that have been or that are being undertaken to ensure that it will no longer hold deposits or repayable funds from the public through the branch after the latter termination. This requirement has been included in order to enhance transparency and the general interest of safety of deposits (Annex IV). This requirement replicates at the branch level the approach commonly followed by supervisors in the case of credit institutions’ notification of voluntary withdrawal of the authorisation. With regard to the communication of own funds from the home to the host authority, Annex III has been amended to include the communication of the relevant data on own funds(amount, composition and requirements) at both individual and consolidated level, the latter where applicable and available

FINAL DRAFT AMENDING RTS AND ITS ON PASSPORT NOTIFICATION to the home authority. By this amendment, the pursued objective is the increase the efficiency and cooperation between home and host authorities.
2.3 Other amendments
As part of the overall goal to improve the clarity and quality of the information in order to enable a better assessment of the notification by the competent authorities, draft amended Annex I and Annex V expressly require the indication of the Legal Entity Identifier (‘LEI’) – where available – together with national reference code of the credit institution. Some minor amendments have also been made such as update of legal references to services to be rendered in accordance with Directive 2014/65/EU on markets in financial instruments and Directive 2015/2366/EU on payment services in the internal market and addition of some information items in Annexes II, IV and VI relating to the communication by the credit institution with the relevant competent authority(ies), namely, the name of the home authority department and reference email.

FINAL DRAFT AMENDING RTS AND ITS ON PASSPORT NOTIFICATION
3. Final draft amending
regulatory technical standards
COMMISSION DELEGATED REGULATION (EU) No …/.. of XXX […] amending Commission Delegated Regulation (EU) No 1151/2014 supplementing Directive 2013/36/EU of the European Parliament and of the Council with regard to regulatory technical standards on the information to be notified when exercising the right of establishment and the freedom to provide services THE EUROPEAN COMMISSION, Having regard to the Treaty on the Functioning of the European Union, Having regard to Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit instituions and investment firms, amending Directive 2002/87/EC and repealing Directive 2006/48/EC and Directive 2006/49/EC3 , and in particular Article 35(5), Article 36(5) and Article 39(4) thereof, Whereas:
(1) Commission Delegated Regulation (EU) No 1151/2014 lays down the information for notification by credit institutions for the exercise of the right of establishment and the freedom to provide services. (2) With a view to fostering convergence in the comptent authorities’ assessment practices of the notification submitted by credit institutions, the information laid down in Commission Delegated Regulation (EU) No 1151/2014 should be further detailed. Furthermore, since the entry into force of that Regulation, some legal references should be updated in order to ensure legal certainty. (3) The information provided by the credit institution with a branch passport notification should be sufficiently detailed to ensure that the competent authority of the home Member State perform an accurate and comprehensive assessment of the credit institution’s adequacy to carry out the activities for which notification is submitted. To this purpose, the information provided should indicate the intended start date of each activity rather than just the intended start date of the core business activities. Similarly, the financial plan containing forecasts for the the balance sheet and profit and loss account covering a three year period should include the underlying assumptions. (4) In order to increase the efficiency in the identification of the credit institution in the communication between home and host authorities or by the credit institution, as the case may

3 OJ…….

FINAL DRAFT AMENDING RTS AND ITS ON PASSPORT NOTIFICATION be, the communication should indicate the credit institution’s national reference code and the Legal Entity Identifyer (‘LEI’) where available. (5) Consistent with the general interest of safety of deposits and with a view to enhancing factual certainty and reliability, when submitting a communication relating to the planned termination of a branch, the credit institution should include a statement by the credit institution itself, indicating the measures that have been or that are being undertaken to ensure that the branch will no longer hold deposits or other repayable funds from the public after the latter termination. (6) With regard to the service passport notification, similarly to the requirment for branch passport notification, the information provided by the credit institution should be sufficiently detailed to ensure that the competent authority of the home Member State performs an accurate and comprehensive assessment of the credit institution’s adequacy to carry out the activities for which the notification is submitted. To this purpose, the information provided should indicate the intended start date of each activity rather than just the intended start date of the core business activities. (7) The provisions in this Regulation should be read along with the provisions in Commission Implementing Regulation (EU) No XX/XXXX, amending Commission Implementing Regulation (EU) No 926/20144 . (8) This Regulation is based on the draft regulatory technical standards submitted by the European Supervisory Authority (European Banking Authority) (EBA) to the Commission. (9) EBA has conducted open public consultations on the draft regulatory technical standards on which this Regulation is based, analysed the potential related costs and benefits and requested the opinion of the Banking Stakeholder Group established in accordance with Article 37 of Regulation (EU) No 1093/20105 . HAS ADOPTED THIS REGULATION:
Article 1
Amendments to Commission Delegated Regulation (EU) No 1151/2014 Commission Delegated Regulation (EU) No 1151/2014 is amended as follows:

1. In Article 3, paragraph 1, point (a) is replaced by the following:
   ‘(a) name and address of the credit institution and intended principal place of business of the branch;’
2. In Article 3, paragraph 2, point (a)(ii) is replaced by the following:
   ‘(ii) a list of the activities in Annex I to Directive 2013/36/EU that the credit institution intends to carry out in the host Member State, including the intended start date for each activity as accurate as possible. In case of cessation of activities, the indication of the ceased activities;’
3. In Article 3, paragraph 2, point (a)(iii) is replaced by the following:
   ‘(iii) ‘an indication of the activities that will constitute the core business in the host Member State;’

4 Commission Implementing Regulation (EU) No 926/2014 of 27 August 2014 laying down implementing technical standards with regard to standard forms, templates and procedures for notifications relating to the exercise of the right of establishment and the freedom to provide services according to Directive 2013/36/EU of the European Parliament and of the Council Text with EEA relevance (OJ L 254, 28.8.2014, p. 2). Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC (OJ L 331, 15.12.2020, p. 12).

FINAL DRAFT AMENDING RTS AND ITS ON PASSPORT NOTIFICATION
4. In Article 3, paragraph 2, point (b)(iii) is replaced by the following:
‘(iii) where the branch is expected to carry out one or more of the investment services and activities defined in point 2 of Article 4(1) of Directive 2014/65/EU, a description of the following arrangements:’
5. In Article 3, paragraph 2, point (b)(iii), second indent is replaced by the following:
‘— the arrangements for compliance with the obligations laid down in Articles 24, 25, 26, 27 and 28 of Directive 2014/65/EU and measures adopted pursuant thereto by the relevant competent authorities of the host Member State;’
6. In Article 3, paragraph 2, point (d)(i) is replaced by the following:
‘— a financial plan containing forecasts for balance sheet and profit and loss account covering a period of three years, comprising the underlying assumptions;’
7. In Article 4, paragraph 2, the following point (d) is added:
‘(d) where the branch takes or took deposits and other repayable funds in the exercise of its activities, a statement by the credit institution indicating the measures that have been or that are being undertaken to ensure that it will no longer hold deposits or other repayable funds from the public through the branch, after the latter termination.’
8. In Article 5, letter (c) is replaced by the following:
‘(c) the intended commencement date, as accurate as possible, for each activity that the credit institution intends to carry out’
Article 2
Entry into force
This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union. This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at Brussels, For the Commission The President

[For the Commission
On behalf of the President

[Position]

4. Final draft amending implementing technical
   standards
   COMMISSION IMPLEMENTING REGULATION (EU) No …/... amending Commission Implementing Regulation (EU) No 926/2014 laying down implementing technical standards with regard to standard forms, templates and procedures for notifications relating to the exercise of the right of establishment and the freedom to provide services according to Directive 2013/36/EU of the European Parliament and of the Council of XXX THE EUROPEAN COMMISSION, Having regard to the Treaty on the Functioning of the European Union, Having regard to Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit instituions and investment firms, amending Directive 2002/87/EC and repealing Directive 2006/48/EC and Directive 2006/49/EC6 , and in particular Article 35(5),
   Article 36(5) and Article 39(4) thereof,
   Whereas:
   (1) Commission Implementing Regulation (EU) No 926/2014 sets out the standard forms, templates and procedures for notifications for the exercise of the right of of establishment and the freedom to provide services by credit institutions. (2) The information set out in such standard forms and templates has to be further detailed consistently with the requirements laid down in Commission Delegated Regulation XX/XXXX [amending Commission Delegated Regulation (EU) No 1151/2014]. Furthermore, since the entry into force of Commission Implementing Regulation (EU) No 926/2014, some legal references should be updated in order to ensure legal certainty. (3) In order to provide more clarity to the branch passport communication, it is opportune to specify that the the latest available information on own funds is requested both at the credit institution individual and consolidated reporting level, where applicable and where information at consolidated level is available to the home competent authority. (4) This Regulation is based on the draft implementing technical standards submitted by the European Supervisory Authority (European Banking Authority) (EBA) to the Commission. (5) EBA has conducted open public consultations on the draft implementing technical standards on which this Regulation is based, analysed the potential related costs and benefits and requested the opinion of the Banking Stakeholder Group established in accordance with Article 37 of Regulation (EU) No 1093/20107 . HAS ADOPTED THIS REGULATION:
   Article 1
   Amendment to Commission Implementing Regulation (EU) No 926/2014 Commission Implementing Regulation (EU) No 926/2014 is amended as follows:

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7 Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC (OJ L 331, 15.12.2020, p. 12).

1. In Article 6, paragraph 1 is replaced by the following:
   ‘1. The competent authorities of the home Member State shall use the form laid down in Annex II to communicate a branch passport notification to the competent authorities of the host Member State together with a copy of the branch passport notification and with the latest available information on own funds using the form laid down in Annex III. Such latest available information on own funds of the credit institution submitting the passport notification shall be indicated at both the individual and consolidated level, where applicable and available to the home competent authority.’
2. In Article 8, paragraph 2 is replaced by the following:
   ‘2. Credit institutions shall use the form laid down in Annex IV to notify a change in branch particulars notification to the competent authorities of the home and host Member States where the change concerns a planned termination of the operation of the branch. Where the branch takes or took deposits and other repayable funds, the credit institution shall also be required to submit a statement indicating the measures that have been or that are being undertaken to ensure that it willno longer hold deposits or other repayable funds from the public through the branch, after the latter termination.’
3. Annexes I to VI are amended in acordance with the Annex to this Regulation.
   Article
   Entry into force
   This Regulation shall enter into force on the the twentieth day following that of its publication in the Official Journal of the European Union. This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at Brussels, For the Commission The President

On behalf of the President

[Position]

ANNEX
ANNEX I
Form for the submission of a branch passport notification or a change in a branch particulars notification Where credit institutions notify changes in branch particular notifications to competent authorities of home and host Member States, credit institutions shall only complete the parts of the form which contain information that has changed.

1. Contact information

Type of notification Initial notification of branch passport notification Notification of change in branch particulars notification Host Member State in which the branch is to be established:
[to be completed by the credit institution]
Name and national reference code of the credit institution as available in the credit institution register maintained by the EBA:
[to be completed by the credit institution]
LEI of the credit institution: [to be completed by the credit institution] Address of the credit institution in the host Member State from which documents may be obtained:
[to be completed by the credit institution]
Intended principal place of business of the branch in the host Member State:
[to be completed by the credit institution]
Date on which the branch intends to commence its activities:
[to be completed by the credit institution]
Name of contact person at the branch: [to be completed by the credit institution] Telephone number: [to be completed by the credit institution] E-mail: [to be completed by the credit institution]
2. Programme of operations
2.1. Types of business envisaged
2.1.1. Description of the main objectives and business strategy of the branch and an explanation of how the
branch will contribute to the strategy of the institution and, where applicable, of its group

2.1.2. Description of the target customers and counterparties
2.1.3. List of the activities referred to in Annex I to Directive 2013/36/EU that the credit institution intends to
carry out in the host Member State with the indication of the activities that will constitute the core business in the host Member State, including the intended start date for each activity (as accurate as possible). No. Activity Activities that the credit institution intends to start carrying out (fill in with “S”) / or to cease carrying out (fill in with “C”) Activities that will constitute the core business Intended start or cease date for each activity

1. Taking deposits and other repayable funds
2. Lending including, inter alia: consumer credit,
   credit agreements relating to immovable property, factoring, with or without recourse, financing of commercial transactions (including forfeiting)
3. Financial leasing
4. Payment services as defined in Article 4(3) of
   Directive (EU) 2015/2366 of the European
   Parliament and of the Council (*)
   4a. Services enabling cash to be placed on a payment account as well as all the operations required for operating a payment account 4b. Services enabling cash withdrawals from a payment account as well as all the operations required for operating a payment account 4c. Execution of payment transactions, including transfers of funds on a payment account with the user's payment service provider or with another payment service provider:
   — execution of direct debits, including one￾off direct debits — execution of payment transactions through a payment card or a similar device – execution of credit transfers, including standing orders [to be completed by the credit institution] [to be completed by the credit institution]

4d. Execution of payment transactions where the funds are covered by a credit line for a payment service user: — execution of direct debits, including one￾off direct debits — execution of payment transactions through a payment card or a similar device — execution of credit transfers, including standing orders 4e. (*) — Issuing of payment instruments — Acquiring of payment transactions 4f. Money remittance 4g. Payment initiation services 4h. Account information services
5. Issuing and administering other means of
payment (e.g. travellers' cheques and bankers' drafts) insofar as such activity is not covered by point 4
6. Guarantees and commitments
7. Trading for own account or for account of
customers in any of the following:
7a.
 Money market instruments (e.g. cheques, bills, certificates of deposits) 7b.  Foreign exchange 7c.  Financial futures and options 7d.  Exchange and interest-rate instruments 7e.  Transferable securities
8. Participation in securities issues and the
provision of services related to such issues
9. Advice to undertakings on capital structure,
industrial strategy, and related questions and advice as well as services relating to mergers and the purchase of undertakings
10. Money broking
11. Portfolio management and advice
12. Safekeeping and administration of securities
13. Credit reference services
14. Safe custody services

15. Issuing electronic money
    ()Directive 2015/2366/EC of the European Parliament and of the Council of 25 November 2015 on payment services in the internal market (OJ L 337, 23.12.2015, p. 35–127). ()Does the activity referred to in point 4d include the granting of credits in accordance with Article 18(4) of Directive (EU) 2015/2366? yes no () Does the activity referred to in point 4e include the granting of credit in accordance with Article 18(4) of Directive (EU) 2015/2366? ☐yes ☐ no
    2.1.4. List of the services and activities that the credit institution intends to carry out in the host Member State,
    and which are provided for in Sections A and B of Annex I to Directive 2014/65/EU of the European Parliament and of the Council (8 ), when referring to the financial instruments provided for in Section C of Annex I of that Directive Financial Instruments Investment services and activities Ancillary services A 1 A 2 A 3 A 4 A 5 A 6 A 7 A 8 A9 B 1 B 2 B 3 B 4 B 5 B 6 B 7 C1 C2 C3 C4 C5 C6 C7 C8 C9 C10 C11 Note 1:

8 Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (OJ L 243, 12.6.2014, p. 349).

Row and column headings are references to the relevant section and item numbers in Annex I to Directive 2014/65/EU (e.g. A1 refers to point 1 of Section A of Annex I)
2.2. Structural organisation of the branch
2.2.1. Description of the organisational structure of the branch, including functional and legal reporting lines
and the position and role of the branch within the corporate structure of the institution and, where applicable, of its group
2.2.2. Description of the governance arrangements and internal control mechanisms of the branch, including
the following information:
2.2.2.1.risk management procedures of the branch and details of liquidity risk management of the institution, and where applicable, of its group 2.2.2.2.any limits that apply to the activities of the branch, in particular to its lending activities 2.2.2.3.details of the internal audit arrangements of the branch, including details of the person responsible for these arrangements and, where applicable, details of the external auditor 2.2.2.4.anti-money laundering arrangements of the branch including details of the person appointed to ensure compliance with these arrangements 2.2.2.5.controls over outsourcing and other arrangements with third parties in connection with the activities carried out in the branch that are covered by the institution's authorisation [to be completed by the credit institution] The description can be supported by relevant documents, such as an organisational chart [to be completed by the credit institution] [to be completed by the credit institution] [to be completed by the credit institution] [to be completed by the credit institution]

2.2.3. Where the branch is expected to carry out one or more of the investment services and activities defined
in point 2 of Article 4(1) of Directive 2014/65/EU, a description of the following arrangements:
2.2.3.1.arrangements for safeguarding client money and assets 2.2.3.2.arrangements for compliance with the obligations laid down in Articles 24, 25, 27 and 28 of Directive 2014/65/EU and measures adopted pursuant thereto by the relevant competent authorities of the host Member State 2.2.3.3.internal code of conduct including controls over personal account dealing 2.2.3.4.details of the person responsible for dealing with complaints in relation to the investment services and activities of the branch 2.2.3.5.details of the person appointed to ensure compliance with the arrangements of the branch relating to investment services and activities
2.2.4. details of professional experience of the persons responsible for the management of the branch
2.3. Other information
2.3.1. Financial plan containing forecasts for balance sheet and profit and loss account, covering a period of
three years comprising the underlying assumptions [to be completed by the credit institution] [to be completed by the credit institution] [to be completed by the credit institution] [to be completed by the credit institution] [to be completed by the credit institution] [to be completed by the credit institution] [to be completed by the credit institution]

2.3.2. Name and contact details of the Union deposit guarantee and investor protection schemes of which the
institution is a member and which cover the activities and services of the branch, together with the maximum coverage of the investor protection scheme
2.3.3. Details of the branch's IT arrangements
[to be completed by the credit institution]
This information can be provided as an attachment to the notification [to be completed by the credit institution] [to be completed by the credit institution]

ANNEX II
Form for the communication of branch passport notification Competent authorities of the home Member State:
Name of the relevant department:
General e-mail address of the relevant department (if any):
Name of the contact person:
Telephone number:
E-mail:
Address of the competent authorities of the host Member State:
[Date]
Ref:
Communication of branch passport notification
[The communication shall include at least the following information:

• name and national reference code of the credit institution as available
  in the credit institution register maintained by the EBA;
• LEI of the credit institution;
• competent authorities responsible for the authorisation and
  supervision of the credit institution;
• statement on the credit institution's intention to carry out activities
  in the territory of the host Member State, including the date of receipt of the branch passport notification containing information that is assessed to be complete and correct;
• name and contact details of the persons responsible for the
  management of the branch;
• name and contact details of the Union deposit guarantee and
  investor protection schemes of which the institution is a member and which cover the activities and services of the branch.] [Contact details]

ANNEX III
Form for the communication of the amount and composition of own funds and own funds requirements

1. Amount and composition of own funds at the individual level and consolidated (where
   applicable and available)
   Credit institution’s name: ________________________________________________________________ Reference date (Individual level): _________________________________________________________ Reference date (Consolidated level – where applicable and available): ____________________________ Item All references are to the provisions of Regulation (EU) No 575/2013 of the European Parliament and of the Council (1 ) Individual level Amount (in million EUR) Consolidated level (where applicable and available) Amount (in million EUR) Own funds Articles 4(1)(118) and 72 [data as reported in row 010 in Template 1 of Annex 1 of Commission Implementing Regulation (EU) No 680/2014 ( )] [data as reported in row 010 in Template 1 of Annex 1 of Commission Implementing Regulation (EU) No 680/2014 ( )] Tier 1 capital
   Article 25
   [data as reported in row 015 in Template 1 of Annex 1 of Implementing Regulation (EU) No 680/2014] [data as reported in row 015 in Template 1 of Annex 1 of Implementing Regulation (EU) No 680/2014] Common Equity Tier 1 capital
   Article 50
   [data as reported in row 020 in Template 1 of Annex 1 of Implementing Regulation (EU) No 680/2014] [data as reported in row 020 in Template 1 of Annex 1 of Implementing Regulation (EU) No 680/2014] Additional Tier 1 capital
   Article 61
   [data as reported in row 530 in Template 1 of Annex 1 of Implementing Regulation (EU) No 680/2014] [data as reported in row 530 in Template 1 of Annex 1 of Implementing Regulation (EU) No 680/2014] Tier 2 capital
   Article 71
   [data as reported in row 750 in Template 1 of Annex 1 of Implementing Regulation (EU) No 680/2014] [data as reported in row 750 in Template 1 of Annex 1 of Implementing Regulation (EU) No 680/2014]

(
) Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (OJ L 176, 27.6.2013, p. 1). ( ) Commission Implementing Regulation (EU) No 680/2014 of 16 April 2014 laying down implementing technical standards with regard to supervisory reporting of institutions according to Regulation (EU) No 575/2013 of the European Parliament and of the Council (OJ L 191, 28.6.2014, p. 1–1861)
2. Own fund requirements
Credit institution’s name: ________________________________________________________________ Reference date (Individual level): _________________________________________________________ Reference date (Consolidated level – where applicable and available): ____________________________ Item All references are to the provisions of Regulation (EU) No 575/2013 Individual level Amount (in million EUR) Consolidated level (where applicable and available) Amount (in million EUR) Total risk exposure amount Articles 92(3), 95, 96 and 98 [data as reported in row 010 in Template 2 of Annex 1 of Implementing Regulation (EU) No 680/2014] [data as reported in row 010 in Template 2 of Annex 1 of Implementing Regulation (EU) No 680/2014] Risk weighted exposure amounts for credit, counterparty credit and dilution risks and free deliveries Points (a) and (f) of
Article 92(3)
[data as reported in row 040 in Template
2 of Annex 1 of Implementing Regulation
(EU) No 680/2014]
[data as reported in row 040 in Template 2 of Annex 1 of Implementing Regulation (EU) No 680/2014] Total risk exposure amount for settlement/delivery Point (c) (ii) of Article 92(3) and point (b) of
Article 92(4)
[data as reported in row 490 in Template
2 of Annex 1 of Implementing Regulation
(EU) No 680/2014]
[data as reported in row 490 in Template 2 of Annex 1 of Implementing Regulation (EU) No 680/2014] Total risk exposure amount for position, [data as reported in row 520 in Template 2 of Annex 1 of Implementing Regulation (EU) No 680/2014] [data as reported in row 520 in Template 2 of Annex 1 of Implementing Regulation (EU) No 680/2014]

foreign exchange and commodities risks
Points (b)(i), (c)(i) and
(c)(iii) of Article 92(3) and point (b) of Article 92(4) Total risk exposure amount for operational risk Point (e) of Article 92(3) and point (b) of
Article 92(4)
[data as reported in row 590 in Template
2 of Annex 1 of Implementing Regulation
(EU) No 680/2014]
[data as reported in row 590 in Template 2 of Annex 1 of Implementing Regulation (EU) No 680/2014] Additional risk exposure amount due to fixed overheads Articles 95(2), 96(2), 97 and 98(1) point (a) [data as reported in row 630 in Template 2 of Annex 1 of Implementing Regulation (EU) No 680/2014] [data as reported in row 630 in Template 2 of Annex 1 of Implementing Regulation (EU) No 680/2014] Total risk exposure amount for credit valuation adjustment Point (d) of Article 92(3) [data as reported in row 640 in Template 2 of Annex 1 of Implementing Regulation (EU) No 680/2014] [data as reported in row 640 in Template 2 of Annex 1 of Implementing Regulation (EU) No 680/2014] Total risk exposure amount related to large exposures in the trading book Point (b)(ii) of Article 92(3) and Articles 395 to 401 [data as reported in row 680 in Template 2 of Annex 1 of Implementing Regulation (EU) No 680/2014] [data as reported in row 680 in Template 2 of Annex 1 of Implementing Regulation (EU) No 680/2014] Other risk exposure amounts Articles 3, 458, 459 and 500 and risk exposure amounts which cannot be assigned to one of the other items of this
table
[data as reported in row 690 in Template
2 of Annex 1 of Implementing Regulation
(EU) No 680/2014]
[data as reported in row 690 in Template 2 of Annex 1 of Implementing Regulation (EU) No 680/2014]

ANNEX IV
Form for the submission of a change in branch particulars notification which concerns a planned termination of the operation of a branch Name of the contact person at the credit institution or branch:
Telephone number:
E-mail:
Address of the competent authorities of the home Member State:
Address of the competent authorities of the host Member State:
[Date]
[Ref:]
Submission of a change in branch particulars notification which concerns a planned termination of the operation of a branch [The notification shall include at least the following information:

• name and national reference code of the credit institution
  as available in the credit institution register maintained by the EBA;
• LEI of the credit institution;
• name of the branch in the territory of the host Member
  State;
• competent authorities responsible for the authorisation
  and supervision of the credit institution;
• statement on the credit institution's intention to
  terminate the operation of the branch in the territory of the host Member State and the date by which the termination will be effective;
• name and contact details of the persons who will be
  responsible for the process of terminating the operation of the branch;
• estimated schedule for the planned termination;
• information on the process of terminating the business
  relations with branch customers.]
• where the branch provides activity N. 1 (Taking
  deposits and other repayable funds) under section 2.1.3

of Annex I, statement by the credit institution indicating the measures that have been or are being undertaken to ensure that the branch will no longer hold deposits or other repayable funds from the public through the branch after the latter termination. [Contact details]

ANNEX V
Form for the submission of services passport notification
1. Contact information
Type of notification Services passport notification Host Member State in which the credit institution intends to carry out its activities:
Name and national reference code of the credit institution as available in the credit institution register maintained by the EBA:
LEI of the credit institution:
Address of the head office of the credit institution:
Name of contact person at the credit institution:
Telephone number:
E-mail:
2. List of the activities referred to in Annex I to Directive 2013/36/EU that the credit institution
will carry out in the host Member State with the indication of the activities that will constitute the core business of the credit institution in the host Member State, including the intended commencement date for each activity (as accurate as possible) No. Activity Activities that the credit institution intends to carry out (fill in with “X”) Activities that will constitute the core business Intended start date for each activity
1. Taking deposits and other repayable
funds

2. Lending including, inter alia: consumer
credit, credit agreements relating to immovable property, factoring, with or without recourse, financing of commercial transactions (including forfeiting)
3. Financial leasing
4. Payment services as defined in Article
4(3) of Directive 2015/2366/EC of the
European Parliament and of the Council
(*)
4a Services enabling cash to be placed on a payment account as well as all the operations required for operating a payment account 4b Services enabling cash withdrawals from a payment account as well as all the operations required for operating a payment account 4c Execution of payment transactions, including transfers of funds on a payment account with the user's payment service provider or with another payment service provider: – execution of direct debits, including one- off direct debits – execution of payment transactions through a payment card or a similar device – execution of credit transfers, including standing orders 4d Execution of payment transactions where the funds are covered by a credit line for a payment service user (): – execution of direct debits, including one- off direct debits – execution of payment transactions through a payment card or a similar device – execution of credit transfers, including standing orders

4e(*)
– Issuing of payment instruments
– Acquiring of payment transactions
4f Money remittance
4g Payment initiation services
4h Account information services
5. Issuing and administering other means
of payment (e.g. travellers' cheques and bankers' drafts) insofar as such activity is not covered by point 4
6. Guarantees and commitments
7. Trading for own account or for account
of customers in any of the following:
7a  money market instruments (e.g. cheques, bills, certificates of deposits) 7b  foreign exchange 7c  financial futures and options 7d  exchange and interest-rate instruments 7e  transferable securities
8. Participation in securities issues and the
provision of services related to such issues
9. Advice to undertakings on capital
structure, industrial strategy, and related questions and advice as well as services

relating to mergers and the purchase of undertakings
10. Money broking
11. Portfolio management and advice
12. Safekeeping and administration of
securities
13. Credit reference services
14. Safe custody services
15. Issuing electronic money
()Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015 on payment services in the internal market (OJ L 337, 23.12.2015, p. 35–127). () Does the activity referred to in point 4d include the granting of credit in accordance with Article 18(4) of Directive (EU) 2015/2366? ☐ yes ☐ no () Does the activity referred to in point 4e include the granting of credit in accordance with Article 18(4) of Directive (EU) 2015/2366? ☐ yes ☐ no
3. List of the services and activities that the credit institution intends to carry out in the host
Member State, and which are provided for in Sections A and B of Annex I to Directive( ) 2014/65/EU, when referring to the financial instruments provided for in Section C of Annex I of that Directive Financial Instrument s Investment services and activities Ancillary services A 1 A 2 A 3 A 4 A 5 A 6 A 7 A 8 A B 1 B 2 B 3 B 4 B 5 B 6 B 7 C1 C2

C3
C4
C5
C6
C7
C8
C9
C10
C11
Note 1:
Row and column headings are references to the relevant section and item numbers in Annex I to Directive 2014/65/EU on markets in financial instruments (e.g. A1 refers to point 1 of Section A of
Annex I)

ANNEX VI
Form for the communication of services passport notification Competent authorities of the home Member State:
Name of the relevant department:
General e-mail address of the relevant department (if any):
Name of the contact person:
Telephone number:
E-mail:
Address of the competent authorities of the host Member State:
[Date]
Ref:
Communication of services passport notification [The communication shall include at least the following information:

• name and national reference code of the credit institution
  available in the credit institution register maintained by the EBA;
• LEI of the credit institution;
• competent authorities responsible for the authorisation and
  supervision of the credit institution;
• statement on the credit institution's intention to carry out
  activities in the territory of the host Member State in the exercise of the freedom to provide services.] [Contact details]

5. Accompanying documents
   5.1 Cost‐benefit analysis / impact assessment
   As per Article 16(2) of Regulation (EU) No 1093/2010 (EBA Regulation), any guidelines and recommendations developed by the EBA shall be accompanied by an Impact Assessment (IA) which analyses ‘the potential related costs and benefits’. This analysis presents the IA of the main policy options included in this Consultation Paper on the changes proposed to (i) the RTS on the information to be notified when exercising the right of establishment and the freedom to provide services, supplementing Directive 2013/36/EU, and (ii) the ITS with regard to standard forms, templates and procedures for notifications relating to the exercise of the right of establishment and the freedom to provide services according to Directive 2013/36/EU. The IA is high level and qualitative in nature. A. Problem identification Pursuant to Article 35(5) of Directive 2013/36/EU, technical standards have been adopted in 2014 to provide additional information to institutions and competent authorities for the process and information needed when an institution exercises the right of establishment and the freedom to provide services. Specifically, the existing RTS and ITS lay down the information that a credit institution has to provide to the home competent authority when it intends to open a branch or to provide services in another Member State, and the communication to be provided in turn by the home competent authority to the host competent authority. The practical application of these technicalstandardssince 2014 has been assessed in a peer review report conducted by the EBA and published in July 2018. 9 The report identifies several areas of desired modifications to the technical standards that would improve the quality and consistency of passport notifications and the ability of competent authorities to assess these. The consultation paper at hand presents the amended RTS and ITS. B. Policy objectives The draft modified RTS and ITS (including Annexes) in this consultation paper aim at improving the quality and consistency of information provided by an institution notifying their home authorities when it intends to open a branch or provide services in another Member State. Further, the draft amended technical standards aim at providing competent authorities with a more complete and

9 EBA Report on the Peer Review of the RTS on Passport Notification

in‐depth picture of the institutions’ planning and assumptions, thereby allowing enhanced judgement by and dialogue with competent authorities.
C. Baseline scenario
Section C. presents the main policy options discussed and the decisions made during the
amendments to the technical standards. Advantages and disadvantages, as well as potential costs and benefits of the policy options and the preferred options resulting from this analysis are assessed below. The changes proposed to the technical standards can be broadly categorised into two groups: one representing minor changes, including marginal content, legal references updates and other editing changes, and another group containing more substantial changes related to the content of the information competent authorities would receive. The policy options considered as part of the drafting and outlined below are structured along this categorisation. Additional information and details of mostly minor nature Option 1a: Add further information items, clarifications on existing items and other minor changes throughout the information that has to be provided by institutions and communicated between home and host competent authorities. Option 1b: Do not make any changes and keep the technical standards as they are. The EBA Report on the Peer Review of Passport Notification provided crucial insights into the practical experiences of information sharing as part of the process of passport notifications. The outcome of the peer review suggests that i) information provided by institutions is not always consistent across notifications in terms of the level of detail provided, ii) certain information items specifically mentioned in new regulations are not included in the information templates of the current ITS Annexes, iii) practical use and application of the technical standards varies, iv) template formats and labelling could be clarified. These findings represent factors that may impact the consistency of the information provided by institutions and the ability of competent authorities to make as comprehensive and informed an assessment as possible. Whilst changes and additions to the technical standards and information templates may require some minor additional short‐term costs for institutions and competent authorities, these initial transitional costs are assessed to be outweighed by the benefits that changes will bring to the sharing of information. Therefore, Option 1a has been assessed as the preferred option and the amended technical standards propose additional details and information of mostly minor nature. Specifically, it is proposed to:

a) Include more information on the legal entities in the Annexes (national reference code available in the credit institutions register maintained by the EBA and LEI code) to improve consistency and usability of information; b) Update specific legal references to ensure alignment with other updated legal texts; c) Format certain information tables (eg. additional headings) in the ITS Annexes to improve clarity for users; d) Add to the list of services and activities to be considered by the institution in Annex I and V to align with MiFID II (Directive 2014/65/EU) and with PSD2 Annex (Directive (EU) 2015/2366); e) Explicitly differentiate in Annex I between new notifications and changes to existing notifications to formalise current practices; f) Own funds requirements and composition to be communicated from the home to the host at both the institution and consolidated level (the latter only where applicable and available to the home authority); g) In cases of branch closures, institutionsto include a statement indicating the measuresthat have been or that are being undertaken to ensure that it will no longer hold deposits or repayable funds from the public through the branch after the latter termination(Annex IV). Making these amendments, the technical standards will allow for more consistency in the information sharing and add clarity for both institutions and competent authorities. The changes will further align the technical standards with evolving regulation and accommodate the need signalled by competent authorities to align the information templates with current practices. Additional information items with more material content implications: Indication on start date for planned activities Option 2a: Annex I, Table 2 to be amended to include intended start date, as accurately as possible, for each activity planned to be performed by a branch, not only for the core activities. Option 2b: Annex I, Table 2 to include information on the intended start date for core activities only (status quo). In the current versions of the RTS and ITS, when exercising the right of establishment and the freedom to provide services, institutions need to specify the activities they intend to carry out through the branch in the host Member State. Further, they need to indicate which of those activities constitute the core business and what the intended start dates of these core business activities are. The intended start date in turn provides competent authorities with a more concrete view of the status and progress of an institution’s plans: being able to provide an intended start date implies

an institution’s planning process for an activity is at a mature state. Only providing information on this for the core activities, potentially leaves out a substantial and valuable piece of information. Access to the intended start date of each activity for which the notification is submitted, rather than just for the core business, would allow competent authorities a more accurate and complete picture of institutions’ planned activities and it is considered a very relevant piece of information to allow competent authorities to perform an accurate assessment of the notification. Hence, it has been assessed as the preferred Option to extend the information to be provided on the intended start date to each planned activity, as accurately as possible, instead of limiting this to only to the core activities. Option 2a has been chosen as the preferred option. Additional information items with more material content implications: underlying assumptions to be shared Option 3a: As part of ‘otherinformation’ in Annex I, institutionsto provide additional information on the underlying assumptions behind their B/S and P&L forecasts. Option 3b: Keep Annex I, the ‘other information’ section unchanged. The section ‘other information’ as part of Annex I in the current version of the ITS requires institutions to submit a financial plan containing forecasts for the balance sheet and the profit and loss account, covering a period of three years. In order for competent authorities to fully assess the credibility of the plan and concluding from this, the prospect of the intended opening of the branch, accessto more detail on the financial plansis crucial. Full and complete validation of an institution’s plan can only be performed if more granular data is available to the competent authority, including the underlying assumptions. Therefore, Option 3a has been chosen as the preferred option and it is proposed that institutions should submit more detailed information as part of Annex I, ‘other information’. Whilst again this will lead to some additional coststo institutions and competent authoritiesin terms of the provision and assessment of information, this is clearly compensated for by the benefits of competent authorities’ improved understanding and ability to make informed judgements. D. Conclusions It can be argued that some of the changes, in particular those considered under Options 2 and 3, somewhat increase the reporting burden on institutions. Nevertheless, it has been assessed that the changes would greatly improve the assessment process and its quality, enhancing dialogue and competent authorities’ ability to perform their assessment during the notification process, thereby effectively contributing to a sounder and safer banking system in Europe. The proposed changes further reflect and address the findings from last year’s peer review report and are considered to greatly improve the process of notifications relating to the exercise of the right of
establishment and the freedom to provide services.

5.2 Feedback on the public consultation
The EBA publicly consulted on the draft proposal contained in this paper.
The consultation period lasted for three months and ended on 13th February 2020. Six responses were received, of which two were published on the EBA website. The BSG did not submit an opinion. This paper presents a summary of the key points and other comments arising from the consultation, the analysis and discussion triggered by these comments and the actions taken to address them if deemed necessary. In many cases several industry bodies made similar comments or the same body repeated its comments in the response to different questions. In such cases, the comments, and EBA analysis are included in the section of this paper where EBA considers them most appropriate. Changes to the draft amending RTS and ITS have been incorporated as a result of the responses received during the public consultation. Summary of key issues and the EBA’s response Responses to the consultation have mainly focused on two issues: Question 1, relating to the requirement to indicate the intended start date for each activity, rather than for the core business only, and Question n. 3, relating to the new requirement in case of planned branch termination, to submit a statement by an external auditor that the credit institution no longer holds deposits through the branch. On Question 1 respondents have pointed out the uselessness of indicating the intended start date for activities which do not constitute core business activities and the difficulty to indicate such intended start date, given that they are not core business. In this regard the EBA notes that the purpose of requesting the intended start date of each activity is to increase and ensure the effectiveness between the notification and the activities actually carried out by the credit institution. Such correspondence is necessary to provide competent authorities with a complete picture of the institution’s activities and to ensure competent authorities’ comprehensive assessment of the notification. This entails that the notification will only cover those activities that the credit institution actually envisages to carry out cross‐border. On Question 3 respondents highlighted that a statement by an external auditor was too burdensome and that a statement by the credit institution would be sufficient to certify that it no longer holds deposits and that the credit institution is best placed to provide such a statement. The EBA has taken note of this comment and amended the requirement accordingly. On Question 4, one respondent is of the view that the communication of own funds at consolidated level is sufficient. The EBA observes that the communication of own funds at the individual level is indispensable given that the branch is part of the entity submitting the notification.

Summary of responses to the consultation and the EBA’s analysis Comments Summary of responses received EBA analysis Amendments to the proposals General comments Two respondents provided observations generally linked to importance of improving the EU framework for the freedom of provision of banking services on a cross‐border basis, and not directly relating to the passport notification. Responses to questions in Consultation Paper EBA/CP/2019/12 Question 1. Do you agree that requiring the credit institution submitting the passport notification to indicate the intended start date of each activity which the notification refers to, rather than only the core activities, will support the competent authorities’ comprehensive and accurate assessment of the passport notification and provide them with an accurate picture of the credit institution’s planned activities as well as their ability to carry them on? These activities by definition will not constitute the core activity of the branch and it is not easy to determine when the activity will start. This information will not contribute to an accurate assessment by the competent authorities for the assessment of the credit institution planned activities the following reasons:
‐ The authorities already have the information regarding the intended start date of the core activities ‐ When assessing the ability of the credit institution to carry on the passported activities the authorities take into account the list of the passported activities independently of their start date. Yes, we agree provided that the credit institution has a certain degree of flexibility on the intended start date, taking into account that it will a forecast The purpose of requesting the intended start date of each activity is to increase and ensure the effectiveness between the notification and the activities actually carried out by the credit institution. Such correspondence is necessary to provide competent authorities with a complete picture of the institution’s activities and to ensure competent authorities’ comprehensive assessment of the notification. This entails that the notification will only cover those activities that the credit institution actually envisages to carry out cross‐border. The RTS and ITS require the indication of the “intended” start date in manner as accurate as possible, not the exact start date. No amendment

Comments Summary of responses received EBA analysis Amendments to the proposals subject to different circumstances that can cause delays on the effective start date. It is stated in the consultation paper that each service passport notification should indicate the intended start date of each activity rather than just the intended start date for the core business activities. However there are no amendmentsto Art 5 of the Commission Delegated Regulation (EU) No 1151/2014 in this respect. We are of the opinion that the whole passport process should be simplified, especially for Free Provision of Services . The gap has been taken note of Text amended Question 2. Do you agree that the indication of the underlying assumption used to develop the forecastswill support the competent authorities’ comprehensive and accurate assessment of the branch passport notification? These forecasts are made pursuant to the business model of the credit institution and we don’t think that this information will support the competent authorities’ comprehensive and accurate assessment for the purposes of branch passport notification. Yes, we agree. The use of assumptions is standard practice for the development of the financial and business plans. The new requirement only provides for the disclosure to the competent authority No amendment Question 3. Do you agree that requesting a statement by an external auditor that the credit institution no longer We are of the opinion that this requirement would make the procedure heavier and increase the costs unnecessary. The credit institution isin a position to The EBA has taken note of this comment and amended the requirement accordingly. The draft RTS now requires that the statement is produced by the

Comments Summary of responses received EBA analysis Amendments to the proposals holds deposits or other repayable funds from the public through the branch in the relevant host Member State is adequate to ensure the transparency of the process and the protection of depositors? certify underitsresponsibility that it no longer holds deposits via its branch. Option 1: to be deleted. “It should be sufficient to notify competent authorities of the closure or discontinuation of the business operations of a branch, including the discontinuation of deposit taking. An additional statement by an external auditor that the branch no longer holds deposits or other repayable funds from the public only increases costs and is unnecessary, in our view”. Option 2: to be amended: not 1 month ahead Should the EBA nevertheless wish to retain this requirement, it should be sufficient to submit the statement immediately after the discontinuation of the branch’s business operations and not one month before. It should be sufficient to notify competent authorities of the closure or discontinuation of the business operations of a branch, including the discontinuation of deposit taking. An additional statement by an external auditor that the branch no longer holds deposits or other repayable fundsfrom the public only increases costs and is unnecessary, in our view. We therefore suggest deleting Article 1(7) of the draft new RTS. credit institution itself and that it indicate the measure that have been or are being undertaken to ensure that the deposits will no longer be held through the branch after its termination.

Comments Summary of responses received EBA analysis Amendments to the proposals Yes, we believe that statement by an external auditor improves the transparency of the process, but on the other hand we think this a cumbersome requirement. In our opinion a formal declaration by the branch manager or the credit institution could also be sufficient. In addition, it is not obvious that the auditor could issue such a statement if he/she cannot rely on the formal declaration issued by the branch manager or the credit institution. Question 4. Do you agree that the the indication of the lastest available information on the credit institution’s own funds at the individual and at the consolidated level where applicable and available, is necessary to the compteent authority will increse the efficient communication and cooperation between home and host authorities? In our opinion it issufficient that the home authority has that information regarding own funds at consolidated level. We do not see why it is necessary to provide this additional information to the host authority as well. the communication of own funds at the individual level is indispensable given that the branch is part of the entity submitting the notification. No amendment