The ECB clarified its expectations of UK banks that plan on establishing a presence in the EU once the UK has left the Union. The ECB and national supervisory authorities expect to receive incoming banks' authorisation 'as soon as possible' but by the end of Q2 2018 'at the very latest'. While transition periods could be essential for smooth transitioning from the UK to the EU, such transition periods should not be used to delay Brexit planning. However, the ECB may allow banks to extend their transition phases if necessary to meet new regulatory requirements and risk management capabilities.