This review reflects the amendments introduced by the fifth Capital Requirements Directive (CRD V) and the Investment Firms Directive (IFD) in relation to the assessment of the suitability of members of the management body. The consultation runs until 31 October 2020.
Combating money laundering and terrorist
financing is crucial for maintaining stability and integrity in the
financial system. Therefore, uncovering any involvement of credit
institutions and investment firms in money laundering and terrorist
financing can have an impact on the viability and trust in the financial
system. In this context, the draft joint Guidelines clarify that the
knowledge, experience and skill requirements are important aspects in
the fit and proper assessment of members of the management body and key
function holders as they contribute to identifying, managing and
mitigating money laundering and financing of terrorism risks.
These
draft joint Guidelines also clarify that being a member of affiliated
companies or affiliated entities does not in itself represent an
obstacle for a member of the management body to acting with independence
of mind.
The Guidelines further specify that a gender-balanced
composition of the management body is of particular importance.
Institutions should respect the principle of equal opportunities for any
gender and take measures to improve a more gender-balanced composition
of staff in management positions.
The draft joint Guidelines also
take into account the recovery and resolution framework introduced by
the Bank Recovery and Resolution Directive (BRRD) and provide further
guidance in this regard. As part of early intervention measures and
during resolution, the suitability of newly appointed members of the
management body and of the management body collectively is relevant and
requires an assessment.
Finally, the draft joint
Guidelines take into account the new legislative framework for
investment firms adopted in 2019 for the identification of the
investment firms subject to the various guidelines.
Consultation process
The
EBA and the ESMA invite stakeholders to send comments solely on the
amendments to the joint EBA and ESMA Guidelines on the assessment of the
suitability of members of the management body and key function holders
as shown in the tracked changes version. Comments to this consultation
can be sent to the EBA by clicking on the "send your comments" button on
the consultation page. Please note that the deadline for the submission
of comments is 31 October 2020.
A public hearing will take place
on 01 October 2020 from 14: 00 to 16:00. All contributions received will
be published following the end of the consultation, unless requested
otherwise.
Legal basis and next steps
These draft
Guidelines have been developed on the basis of according to Article 91
(12) of Directive 2013/36/EU (CRD) and Article 9 of Directive
2014/65/EU.
The joint EBA and ESMA Guidelines will apply to
Competent Authorities across the EU, as well as to institutions on a
solo and consolidated basis. Once the revised Guidelines will enter into
force, the 2017 Guidelines will be repealed.
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