The European Securities and Markets Authority (ESMA) and the European Banking Authority (EBA) published today their revised final joint Guidelines on the assessment of the suitability of members of the management body and key function holders.
These Guidelines take into account the
amendments introduced by the revised Capital Requirements Directive (CRD
V) and the Investment Firms Directive (IFD), and their effect on the
assessment of the suitability of members of the management body, in
particular with regard to money laundering and financing terrorism
risks, and gender diversity. The joint final Guidelines will apply from
31 December 2021.
Combating money laundering and terrorist financing is
essential for maintaining stability and integrity in the financial
system. Uncovering involvement of credit institutions and investment
firms in money laundering and terrorist financing might have an impact
on its viability and the trust in the financial system. In this context,
the final joint Guidelines clarify, in line with CRD V, that assessing
the knowledge, experience and skill requirements include identifying,
managing and mitigating money laundering and financing of terrorism
risks, as these aspects are part of the assessments of the suitability
of members of the management body and key function holders.
In addition, 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 so as to
ensure a more gender balanced pool of candidates for positions within
the management body.
The 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 the management body
collectively are relevant and require an assessment. The Guidelines
provide further details on how the exchange of information between
resolution authorities and competent authorities should work.
Finally, the joint Guidelines take into account the new legislative
framework for investment firms adopted in 2019 by the Investment Firms
Regulation (IFR) and IFD, for the identification of the investment firms
subject to the various guidelines.
final joint Guidelines
ESMA and EBA
© ESMA
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