Regulatory Alerts2013-04-13
Royal Decree 256/2013 incorporating EBA criteria on the assessment of the adequacy of members of the administrative body and key function holders into credit institution regulations
The Spanish Ministry of Economy and Competitiveness issued Royal Decree 256/2013 to align national banking regulations with European Banking Authority standards regarding the fitness and propriety of senior management. The decree mandates that the Bank of Spain evaluate the commercial and professional honorability, knowledge, experience, and ability to exercise good governance of board members and key function holders. It establishes strict criteria for assessing conflicts of interest, requires continuous internal evaluation procedures by credit institutions, and grants the supervisor enhanced powers to authorize, monitor, and sanction non-compliance.
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