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June 16, 2021 | less than a minute read

Fit and Proper - raising the bar

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Dan Fallon

Counsel

Get in touch

Dan Fallon

Counsel

The ECB has launched a public consultation on a draft Fit and Proper Guide and Fit and Proper Questionnaire, with a public hearing due to take place on 15 July 2021.

The objective of the Guide (which replaces the May 2018 version) is "to explain in greater detail the policy stances, supervisory practices and processes applied by the ECB when assessing the suitability of members of the management bodies of significant credit institutions and to specify the ECB’s main expectations." The Questionnaire has been updated "to address calls from the industry for simplification and streamlining and to reflect new policies and practices developed since the last publication of the Questionnaire in 2016."

The Guide and Questionnaire are relevant to firms within the Single Supervisory Mechanism, but will also be of interest to other firms undertaking fit and proper assessments of their management bodies.

The deadline for submitting questions and registration for the public hearing is midnight CET on 5 July 2021. The deadline for submitting comments is midnight CET on 2 August 2021.

With its publication, the ECB aims to further its goal of full transparency by providing further details on its fit and proper assessment and policy stances as well as on its supervisory expectations. The ECB's aim is also to raise the bar for fit and proper supervision and the efficiency of the suitability assessment process.