Regulatory Alerts2023-03-18
FMA Circular 03/2023 on the Assessment of Suitability of Executive Directors, Non-Executive Directors and Key Function Holders
The Austrian Financial Market Authority issued Circular 03/2023 to provide guidance on assessing the suitability of executive directors, non-executive directors, and key function holders in credit institutions, financial holding companies, and investment firms. The document details specific requirements regarding personal reputation, honesty, independence of mind, professional knowledge, and sufficient time commitment, while also addressing collective suitability and the independence of supervisory board members. It further establishes standards for internal fit and proper assessments, onboarding procedures, and notification obligations to ensure robust governance arrangements aligned with the Austrian Banking Act and EBA Guidelines.
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