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The Guidelines contain provisions to be followed by both credit institutions and competent authorities when assessing the suitability of all members of the management body and extend also to key function holders. Moreover, as financial and mixed financial holding companies have significant influence on their credit institutions, they are also included in the scope of the Guidelines.
The Guidelines set out the criteria for the assessment of experience and reputation and documentation requirements for credit institutions. They also contain a notification requirement and provide that in cases where a member of the management body is not suitable, the credit institution and, if necessary, the competent authority shall take appropriate action.
The EBA publicly consulted on the draft proposal contained in this paper and the responses received during the public consultation have been considered in the current text.
These Guidelines are a first important step in achieving a high level of harmonisation in an area which has been governed so far by national rules. With a view of reaching a greater level of harmonisation, the EBA will review these Guidelines in light of the final Capital Requirements Directive text (CRD IV). During this review, the EBA will also identify those situations where a higher level of harmonisation would allow supervisors to rely strongly on assessments made by other national competent authorities.