03/10/2017 | Clifford Chance
The European Banking Authority (EBA) and ESMA have published their joint guidelines on assessing the suitability of members of management bodies and key function holders.
The guidelines aim to harmonise and improve suitability assessments within EU financial sectors, and to ensure sound governance arrangements in financial institutions in line with the Capital Requirements Directive (CRD 4) and MiFID2. The guidelines highlight the importance for institutions to consider whether candidates have the knowledge, qualification and skills necessary to safeguard proper and prudent management of the institution. The guidelines are also intended to foster more diverse management bodies and contribute to improved risk oversight and resilience of institutions.
The guidelines will apply as of 30 June 2018 to competent authorities across the EU, as well as to institutions on an individual and consolidated basis.