Whether within the scope of Brexit or due to further considerations on the realignment or new establishment in Germany, foreign banks are well advised to examine in a timely manner whether their business model falls within the scope of new regulatory requirements. This also applies to German banks that maintain business activities through branches in the UK.
What to keep in mind in the scope of Brexit.
The most important challenge is probably making a realistic assessment of the opportunities and risks of a realignment in Germany (for foreign banks) or in the UK (for German banks) - considering all regulatory requirements and costs.
In particular the following points should be looked at intensively:
- The safeguarding of compliance with all legal and regulatory requirements. From the application for approval to the establishment of internal governance, and compliance with the respective accounting and reporting regulations.
- The extension of reporting and governance requirements when changing from an EU-passport branch to a third-country branch.
- Development of the necessary infrastructure (organizational, personnel and technical).
- The necessary creation of a competitive advantage over other institutions.
We can provide you with comprehensive support:
KPMG offers you competent, comprehensive advice and helps you in all situations that may arise for your institution in connection with Brexit.
We are there for you during:
- The new establishment of foreign banks and support during the application process for approval in Germany or the (temporary) approval regulations in the UK.
- The analysis of your current and planned business activities to filter the relevant regulatory regulations in a target- and user-oriented manner (e.g. when changing from an EU-passported branch to a third-country branch) as well as benchmark information.
- The analysis of additional reporting and related data requirements for bank management and reporting, and of the implementation of processes to ensure data quality and availability, as well as the development of data supply schedules. The analysis is based on a detailed overview of reporting requirements depending on the type of institution (e.g. CRR credit institution, securities trading bank, third-country branch).
- We have knowledge of, and experience in all common software solutions for the implementation of reporting requirements.
- We support you in the conception and establishment of accounting as well as regular external reporting including the necessary written rules. We can also take on communication with supervisory authorities. The basis is an overview of all documents required to successfully pass a supervisory audit (by the supervisory authority itself, external and internal audits) – you can also build on our expertise in this regard.
- In addition, we also offer to carry out external reporting for your institution as part of the outsourcing to KPMG.
Do you have any questions about the challenges posed by Brexit to foreign banks or about our services? Please feel free to contact us. Thanks to our global network, we have extraordinarily in-depth knowledge of all issues regarding the UK's departure from the EU. Benefit from our know-how.