RegSol Blog

ESMA and EBA Publish Final Guidance on Fit & Proper Requirements

July 2021

In addition to the emphasis the Central Bank has placed on Fitness & Probity (F&P) recently, the matter is also getting attention at a European level. On July 2nd, 2021, the European Securities and Markets Authority (ESMA) and the European Banking Authority (EBA) published their revised final joint Guidelines on the assessment of the suitability of members of the management body and key function holders.

These Guidelines take effect from 31st December 2021 and expand on the amendments introduced in the Capital Requirements Directive (CRD V) and the Investment Firms Directive (IFD).

The key areas of focus relate to:

  • Money Laundering and financing terrorism risks – ensuring that appropriate persons in senior management are fit and proper to carry out their roles, helping to ensure the stability and integrity of the financial system
  • Gender Diversity – that a more gender balanced approach is taken for equal opportunity positions within the management body.
  • Assessment of suitability - for newly acquired members of the management body.

In addition, the new Guidelines outline the new legislative framework for investment firms introduced in 2019.

For further details please refer to the following link:

ESMA & EBA Publish final guidance on Fit & Proper Requirements