The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) have launched a consultation on revised joint guidelines for assessing the suitability of members of management bodies and key function holders. The updated guidelines are part of a broader effort to harmonise suitability assessments and promote consistent supervisory practices across the EU. The consultation is open until 25 May 2026.
The draft revised EBA-ESMA joint guidelines reflect new requirements introduced by the revised Capital Requirements Directive (CRD) for large institutions. They also include updates for entities covered by CRD and for investment firms within the scope of the Markets in Financial Instruments Directive (MiFID II).
The updates introduce several changes. These include the use of ex-ante applications in cases where competent authorities currently carry out ex-post assessments, and mandatory suitability assessments for certain key roles, such as heads of control functions and chief financial officers. The guidelines also clarify new CRD requirements for third-country branches and strengthen links with the anti-money laundering and counter-terrorist financing framework. They provide guidance on identifying reasonable grounds to suspect money laundering or terrorist financing risks.