These Guidelines set out appropriate supervisory practices within the European System of Financial Supervision and regarding how Union law should be applied.
Subject matter, scope and definitions
5. These Guidelines specify further, in accordance with Article 91(12) of Directive 2013/36/EU2
and Article 9(1) second subparagraph of Directive 2014/65/EU3, the requirements regarding
the suitability of members of the management body in particular, the notions of sufficient
time commitment; honesty, integrity and independence of mind of a member of the
management body; adequate collective knowledge, skills and experience of the management
body; and adequate human and financial resources devoted to the induction and training of
such members. The notion of diversity to be taken into account for the selection of members
of the management body is also specified in accordance with the above-mentioned articles.
6. The Guidelines also specify elements regarding the suitability of the heads of internal control
functions and the chief financial officer (CFO), where they are not part of the management
body, and, where identified on a risk-based approach by those institutions, of other key
function holders, as part of the governance arrangements referred to in Articles 74 and 88 of
Directive 2013/36/EU and Articles 9(3), 9(6) and 16(2) of Directive 2014/65/EU, and on the
related assessment processes, governance policies and practices, including the principle of
independence applicable to certain members of the management body in its supervisory
function....
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