The document outlines the requirements for third-country branches operating within Member States. It mandates that such branches must appoint at least two individuals with requisite expertise to manage their operations locally, while compliance with various articles of regulation is stipulated according to the class of the branch. Class 1 branches face stricter obligations, including the establishment of a local management committee, whereas class 2 branches must adhere to specific internal control protocols based on their size and complexity.

Furthermore, the text emphasises the importance of adequate governance, risk management practices, and a robust internal control framework, including the need for monitoring outsourcing arrangements and managing counterparty risks. An independent assessment of compliance is required on a regular basis, with guidelines from the EBA anticipated by 10 January 2027 to further clarify these provisions.