Accounting documents of branches of foreign credit and financial institutions

SUMMARY OF:

Directive 89/117/EEC — obligations of branches of credit and financial institutions headquartered in other EU countries in regard to publishing annual accounts

WHAT IS THE AIM OF THE DIRECTIVE?

It aims to remove the need for branches of foreign banks and other financial institutions whose head office is in another country (EU or non-EU) to publish separate annual accounts.

KEY POINTS

• The directive applies to all EU branches of banks and other financial institutions whose head offices are outside the EU country where the branch is established.
• The directive removes the need to publish separate branch accounts. Documents which are to be published by branches of credit institutions and financial institutions whose head office is in another EU country include their annual accounts, consolidated accounts, annual report, etc. These must be published and audited as required by the law of the EU country in which the head office is located. Pending further coordination, EU countries may require branches to publish additional information such as income and costs, and the branch's total claims and liabilities.
• Documents to be published by branches of credit institutions and financial institutions whose head office is in a non-EU country are the same as for the branches which have their head offices in an EU country. They must be published and audited as required by the law of non-EU country. However, if the rules in question do not conform with EU accounting requirements, EU countries may require branches to publish annual accounts relating to their own activities.
• EU countries may require that certified translations of the documents be published in their official language(s).

FROM WHEN DOES THE DIRECTIVE APPLY?

It has applied since 14 January 1989. EU countries had to incorporate it into national law by 1 January 1991.

MAIN DOCUMENT

Council Directive 89/117/EEC of 13 February 1989 on the obligations of branches established in a Member State of credit institutions and financial institutions having their head offices outside that Member State regarding the publication of annual accounting documents (OJ L 44, 16.2.1989, pp. 40–42)

last update 23.10.2017