The European Banking Authority (EBA) issued Guidelines which outline the process, criteria and minimum requirements for assessing the suitability of members of the management body and key function holders of a credit institution. The Guidelines do not affect investment funds or their managers directly but are of interest, in informing thinking and in light of increasing EU harmonisation of financial regulation. The Guidelines represent the EBA’s “view of appropriate supervisory practices within the European System of Financial Supervision or of how Union law should be applied in a particular area”.
The Guidelines contain provisions to be followed by both credit and financial institutions and regulators when assessing the “suitability” of members of the management body and key function holders. The “suitability” relates to the degree to which such persons are of good repute and have sufficient experience to fulfil their duties. The Guidelines set out the criteria for the assessment of experience and reputation and documentation requirements. The Guidelines also contain measures that can be taken where an individual is not considered suitable. The Guidelines are to be complied with by competent authorities and credit institutions by 22 May 2013.