EIOPA Supervisory Statement on the Governance of Third Country Branches

Wed Mar 1 2023

EIOPA has published its supervisory statement on the use of governance arrangements in third countries to perform functions or activities.   EIOPA and National Competent Authorities expect that:

  • undertakings and intermediaries using third country branches retain an appropriate level of corporate substance within the European Economic Area (EEA), proportionate to the nature, scale and complexity of their business in the bloc;
  • third country branches serve primarily the markets in which they are established and that third country branches with the sole objective of supporting EU-based undertakings and intermediaries should be avoided;
  • undertakings and intermediaries should not be disproportionately dependent on their third-country arrangements for activities in the EEA;
  • undertakings appropriately oversee regulated functions and are in a position to take full responsibility for effective decision making and risk management;
  • regulated functions and activities are not structured or conducted in a way that impairs the ability of supervisors to monitor compliance; and that
  • undertakings and intermediaries considering or operating such third-country arrangements demonstrate to supervisors that the structuring of their activities can safeguard the ability of the supervisory authority to undertake proper supervision.

Brokers Ireland has contacted the Central Bank to ascertain their views and they responded to advise that they are currently considering the EIOPA Statement and will provide an update in due course.  Once a response is received,  a further update to the membership will be provided by Brokers Ireland.

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