Passporting for Credit Institutions

Being granted a banking licence authorisation in one Member State opens the possibility that a credit institution can passport throughout the rest of the European Union without the need to establish a subsidiary in another Member State. Passporting can be affected through either the establishment of a branch in another Member State (subject to notifying the home member state) or by the provision of services in another Member State (i.e. servicesare provided in another Member State but no physical presence is established in that State), also subject to notification requirements.   

In accordance with Article 35 of the Capital Requirements Directive 2013/36/EC (CRD IV) any EEA credit institution wishing to exercise the freedom to provide services within another EEA Member State by establishing a branch shall notify the competent authorities of the home Member State of their intention to do so.

In accordance with Article 39 of CRD IV any EEA credit institution wishing to exercise the freedom to provide services on a cross border basis within another EEA Member State shall notify the competent authorities of the home Member State of their intention to do so.

The introduction of the Single Supervisory mechanism (SSM) has resulted in a change in the identities of the authorities carrying out the tasks of the home and host state regulator referred to above. The SSM Framework Regulation defines the roles of the ECB and the National Competent Authority (NCA) with regard to the right to establish a branch or the Freedom to provide services in this regard. SSM has created a number of passporting regimes such as Passporting within the SSM, Incoming passporting from outside the SSM and Outgoing passporting from inside the SSM.         

For credit institutions within the SSM wishing to establish a branch /provide services outside the SSM; the ECB will be the home authority for significant banks and the NCA for less significant banks. 

For credit institutions outside of the SSM wishing to establish a branch/provide services inside the SSM; the ECB will be the host authority where a branch is significant while the NCA will be the host for a less significant branch. 

For credit institutions within the SSM wishing to establish a branch /provide services within the SSM; the ECB will be the home authority for significant banks and the NCA for less significant banks.

The Central Bank of Ireland will be the NCA in the appropriate circumstances outlined above. 

Please refer to relevant Forms. 

Passporting Services Notification Form - for SIs and LSIs | doc 394 KB Branch Passporting Notification Form - For SIs (passporting within the SSM) | doc 501 KB Branch Passporting Notification Form - For SIs (passporting outside the SSM) | doc 499 KB Branch Passporting Notification Form - For LSIs | doc 500 KB

*These forms are based on Commission Implementing Regulation (EU) No 926/2014 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. The Commission Implementing Regulation has not been updated to reflect the new MiFID II activities/financial instruments of:

  • Organised Trading Facility (OTFs) (A9)
  • The new financial instrument of emission allowances (C11)

or the PSD2 activity of:

  • Account information services

Credit institutions intending to passport outwards under CRD for these activities/instrument types should complete the relevant form, and also set out in the accompanying email:

  • which of the above activities they wish to notify- using the descriptions as set out above;
  • whether they wish to notify on a branch or services basis; and
  • which EEA states the notification applies to.