EU's EBA Regulatory Products Compliance Deadline: Comply or Explain

• The European Banking Authority (EBA) has published its regulatory products, triggering a two-month 'comply or explain' period.
• Competent authorities must notify the EBA of their intentions to comply with the guidelines and recommendations during this period.
• Financial institutions may be required to report their compliance status if specified in the guidelines or recommendations.
• The 'comply or explain' framework promotes transparency and consistency in supervisory practices throughout the EU.

This period is triggered by the publication of the English versions of the regulatory products, which are accompanied by related reports such as background information, feedback from public consultations, and cost-benefit analyses.

The European Banking Authority (EBA) has published its regulatory products on its website, marking the start of a two-month 'comply or explain' period. During this time, competent authorities must notify the EBA of their intentions to comply with the guidelines and recommendations. This period is triggered by the publication of the English versions of the regulatory products, which are accompanied by related reports such as background information, feedback from public consultations, and cost-benefit analyses. The 'comply or explain' framework requires competent authorities to inform the EBA whether they intend to comply with the guidelines or recommendations, providing reasons for non-compliance if applicable.

The EBA's regulatory products are issued in accordance with Article 16 of the EBA Founding Regulation. This article emphasizes the importance of compliance with EBA guidelines and recommendations, requiring both competent authorities and financial institutions to make every effort to comply. The publication of regulatory products on the EBA website triggers the 'comply or explain' period, during which competent authorities must notify the EBA of their intentions to comply. Financial institutions may also be required to report their compliance status if specified in the guidelines or recommendations.

The 'comply or explain' period is a critical aspect of EU financial regulation, ensuring that competent authorities and financial institutions are held accountable for their compliance with EBA guidelines and recommendations. This framework promotes transparency and consistency in supervisory practices throughout the EU, ultimately contributing to the uniform application of Union laws. As such, lawyers and compliance officers should be aware of this two-month period, which provides a window for competent authorities to inform the EBA of their intentions to comply or explain any non-compliance.

Lawyers and compliance officers should be aware of the two-month 'comply or explain' period following publication of EBA regulatory products, during which competent authorities must notify the EBA of their intentions to comply.

Source: Original reporting via EBA website