EBA To Lenders: Stop Keeping Customers In The Dark Over Brexit

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The banking watchdog of the European Union has released a warning that is intended for the lenders for not informing the customers how they might be affected by Brexit.

In a reproachful statement that was released this afternoon, the European Banking Authority (EBA) said that it had discovered “little evidence of financial institutions communicating effectively to their customers on how they may be affected by the UK withdrawal.”

The message was considered as a follow up to a similar message that was also released by the EBA last June. The previous statement also urged the banks to speed up their contingency planning for Brexit, describing their preparations “inadequate.”

The statement that was released today admitted “continued progress in contingency planning,” calling on the financial institutions to maintain their efforts in this regard, however, the EBA said that it had seen little evidence of progress in keeping the customers in-the-know.

Many banks have set about obtaining new licences to continue their operations across the European Union, relocating their businesses and changing their mechanisms to enable for data transfers between June and now.

It added: “The EBA also notes that, should the customers that have concerns about whether they may be impacted by the UK withdrawal from the EU and that have not been contacted by their financial service provide by the end of 2018, they might wish to contact their financial institutions directly.”

The statement comes amid the continued political turmoil in Westminster as Theresa May, the British Prime Minister, attempts, and so far fails, to convince the MPs to vote through her withdrawal agreement that was struck with the negotiators of the European Union.

Last week, PM May survived a vote of no confidence that was called by her own party after delaying a so-called meaningful vote on the deal until January.