1. Passporting Procedures in relation to Authorised Credit Institutions incorporated in the Republic of Cyprus seeking to exercise the Right of Establishment and the freedom to provide services within the terittory of another Member State.
On 19 November 2014 the “Commission Delegated Regulation (EU) No 1151/2014 of 4 June 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 Commission Delegated Regulation”) entered into force. The aforementioned Regulation is binding in its entirety and directly applicable in all Member States.
The Commission Delegated Regulation specifies the information that credit institutions shall provide to the competent authorities of their home Member State for the purpose of notifying the exercise of the right of establishment (i.e. branch passport notifications) or of the freedom to provide services (i.e. services passport notifications) within the territory of another Member State. It, also, specifies the information that will need to be communicated in case of changes in the initial branch passport notification (i.e. change in branch particulars notification), including termination of a branch operation.
In accordance with the said Regulation credit institutions are required to submit a programme of operations, indicating the types of business envisaged, providing, also, explanations as to how the proposed branch’s activities will fit into and contribute to the overall strategy of the credit institution. In addition, credit institutions are expected to indicate their core business activities in the jurisdiction of the host Member State and the intended start dates for such activities. The structural organisation of the branch, including its governance arrangements, is also specified as part of the information to be notified, as is information on the financial plan of the branch for a period of three years.
Information on the planned termination of the operation of a branch is considered to fall under the category of change in a branch particulars notification and, therefore, the provision of a specific set of information on a planned termination, mainly concerning the management of the relationships of the branch with its existing customers, is also included as a requirement to be met by credit institutions.
The provisions of the Commission Delegated Regulation should be read along with the provisions of the “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” (“the Commission Implementing Regulation”). The latter Regulation entered into force on 17 September 2014 and is, also, binding in its entirety and directly applicable in all Member States.
The Commission Implementing Regulation lays down the standard forms, templates and procedures on the notification requirements for credit institutions when exercising their right of establishment (i.e. branch passport notifications) and their freedom of providing services (i.e. services passport notifications), as well as procedures on the interaction and cooperation between the competent authorities of the home Member State and the competent authorities of the host Member State for the purposes of such notifications. In addition, procedures covering the notification of changes to the initial branch passport notification (i.e. change in branch particulars notification) are, also, prescribed therein.
Having regard to the developments above, any Authorised Credit Institution (“ACI”)1 incorporated in the Republic of Cyprus, seeking to establish a branch or to provide cross-border services within the territory of another Member State2 , must submit a duly completed notification to the Central Bank of Cyprus, ensuring that all the required information as per the provisions of the Commission Delegated Regulation has been included therein, using the relevant form laid down in the appropriate annex of the Commission Implementing Regulation.
In particular, ACIs are required to use the forms specified below, which constitute part of the Commission Implementing Regulation, as appropriate:
• ANNEX I : 3 Form for the submission of a branch passport notification or a change in a branch particulars notification (i.e. except where the change concerns a planned termination of the operation of the branch),
• ANNEX III: Form for the communication of the amount and composition of own funds and own funds requirements,
• ANNEX IV: Form for the submission of a change in branch particulars notification which concerns a planned termination of the operation of a branch,
• ANNEX V: Form for the submission of services passport notification.
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1. either a significant or a less significant institution.
2. either a Member State which participates in the Single Supervisory Mechanism (i.e. in an SSM participating Member State) or in a Member State which does not participate in the Single Supervisory Mechanism (i.e. in a non-SSM participating Member State).
3. As per the European Central Bank's requirements on Data Protection, Annex I includes a relevant Privacy Statement of the latter, which is applicable in the case of a significant ACI seeking to exercise the right of establishment within the terittory of another SSM participating Member State or within the terittory of a non-SSM participating Member State.
List of Authorised Credit Institutions incorporated in Cyprus which have established a branch in other Member States:
• Bank of Cyprus Public Company Ltd: Greece*
*Provision of activity 6 (guarantees and commitments) of annex I of the Directive 2013/36/EU only with respect to the portfolio of the former branch of Bank of Cyprus Public Company Ltd, which was not transferred to Piraeus Bank S.A.
List of Authorised Credit Institutions incorporated in Cyprus which have notified the Central Bank of Cyprus of their interest in providing services on a cross border basis, in other Member States, without establishment:
2. Passporting procedures in relation to Credit Institutions incorporated in other Member States seeking to exercise the Right of Establishment and the Freedom to provide services within the territory of the Republic of Cyprus.
Credit Institutions incorporated in other Member States seeking to establish a branch or to offer services in Cyprus on a cross border basis, within the scope of the provisions of Directive 2013/36/EU, are kindly requested to consult the authorities of their home Member State as well as the following Regulations of the European Commission which are binding in their entirety and directly applicable in all Member States:
The Central Bank of Cyprus may be approached directly in order to obtain information on the conditions under which, in the interests of the general good, activities shall be carried out in Cyprus by a branch of a credit institution incorporated in another Member State operating under the right of establishment.
• Index of credit institutions incorporated in other Member States, which have established a branch in Cyprus, in accordance with the provisions of Directive 2013/36/EU (please scroll down to: "BRANCHES OF FOREIGN CREDIT INSTITUTIONS FROM E.U. MEMBER STATES")