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Aki Corsoni-Husain
Aki Corsoni-Husain
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George Apostolou
George Apostolou
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Chiara Deceglie
Chiara Deceglie
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  • Partner
  • Luxembourg
Massimiliano della Zonca
Massimiliano della Zonca
  • Massimiliano della Zonca

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Philip Graham
Philip Graham
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Ayana Hull
Ayana Hull
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Katerina Katsiami
Katerina Katsiami
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Petros Kiteos
Petros Kiteos
  • Petros Kiteos

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Andrew Knight
Andrew Knight
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Joshua Mangeot
Joshua Mangeot
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Mirza Manraj
Mirza Manraj
  • Mirza Manraj

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Elina Mantrali
Mirza Manraj
  • Elina Mantrali

  • Associate
  • Cyprus
Vanessa Molloy
Vanessa Molloy
  • Vanessa Molloy

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  • Luxembourg
Andrea Moundi Savvides
Andrea Moundi Savvides
  • Andrea Moundi Savvides

  • Consultant
  • Cyprus
Marina Stavrou
Marina Stavrou
  • Marina Stavrou

  • Associate
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Matt Taber
Matt Taber
  • Matt Taber

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  • Cayman Islands
Carolynn Vivian
Carolynn Vivian
  • Carolynn Vivian

  • Senior Associate
  • Cayman Islands

EBA and ESMA launch consultation to revise joint guidelines on fit and proper assessments

The European Banking Authority (EBA) and the European Supervisory Market Authority (ESMA) launched a public consultation on 31 July 2020 on their revised joint Guidelines on the suitability requirements for senior management of regulated institutions (Joint Guidelines). The revised version will replace previous guidelines issued in 2017. 

It is intended that the Joint Guidelines will be used by member state competent authorities when approving individuals to act as senior managers on regulated institutions.  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 closes on 31 October 2020 and interested parties are asked to send submissions by clicking on the "send your comments" button at EBA’s page here.  

The revised Joint Guidelines:

  • Aim to further improve and harmonise the assessment of suitability within the EU financial sector and to ensure sound governance arrangements in institutions
  • Emphasise that senior managers are expected to have the experience and capability to respond appropriately to AML threats that the business may face
  • Apply to all institutions, independent of their governance structures
  • Seek to promote diversity, including in gender balance, in the process for selecting members of the management body – to avoid “group think”
  • Aim to promote objective decision-making, oversight and compliance with external and internal requirements, including strategies and risk limits, conflict of interest policies and internal whistleblowing procedures

The EBA and ESMA will finalise their updated Joint Guidelines after the public consultation and it is expected that the amended document will enter into force 6 months after publication.

The consultation runs until 31 October 2020.

ESMA's news release can be found here.

The consultation paper can be found here.

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