Circular NBB_2021_27: Transposition of EBA Guidelines on Suitability of Management Body and Key Function Holders

NBB_2021_27 – 16 November 2021 Circular – Page 1/3 Boulevard de Berlaimont 14 – BE-1000 Brussels Phone +32 2 221 54 65 Company number: 0203.201.340 RPM (Trade Register) Brussels www.nbb.be Circular Brussels, 16 November 2021 Reference: NBB_2021_27 Contact person:
Catherine Terrier
Phone +32 2 221 45 32 catherine.terrier@nbb.be EBA Guidelines of 2 July 2021 on the assessment of the suitability of members of the management body and key function holders (EBA/GL/2021/06) Scope  credit institutions and their branches abroad,  stockbroking firms and their branches abroad,  branches established in Belgium of credit institutions and stockbroking firms governed by the law of States that are not members of the European Economic Area,  financial holding companies and mixed financial holding companies governed by Belgian law. For reasons of coherence and in order to ensure a level playing field, an as broad as possible cross-sectoral approach will be pursued with regard to the suitability requirements. Although Guidelines EBA/GL/2021/06 are explicitly addressed to credit institutions and stockbroking firms, they contain good practices that deserve to be widely adopted. Therefore, as indicated in its Fit & Proper Manual, the Bank also recommends other institutions to apply, mutatis mutandis and where possible, the good practices contained in these Guidelines, within the limits of the respective supervisory laws and taking into account the specific proportionality variables set out in the aforementioned Manual. Summary/Objectives This Circular transposes the Guidelines of the European Banking Authority (EBA) of 2 July 2021 on the assessment of the suitability of members of the management body and key function holders (EBA/GL/2021/06) into the Belgian prudential framework. These Guidelines were published on 2 July 2021 and replace, for the financial institutions within their scope, Guidelines EBA/GL/2017/12 of 26 September 2017 with effect from 31 December 2021. The revised Guidelines EBA/GL/2021/06, like their previous version, constitute a reference framework. They accompany and supplement the legal provisions on suitability assessment and should be applied and complied with by the financial institutions within their scope, as explained in this Circular. This Circular applies from 31 December 2021 and replaces, for the financial institutions within its scope, the second point of Circular NBB_2018_25, which concerns the transposition of Guidelines EBA/GL/2017/12.