Regulatory Alerts2018-05-31
Added · Updated
SSM Guide to fit and proper assessments
The ECB establishes detailed policies, practices, and processes for assessing the suitability of members of the management bodies of significant credit institutions and certain less significant institutions. The guide defines six supervisory principles, including primary responsibility for institutions and consistency across the Single Supervisory Mechanism, while outlining specific assessment criteria such as experience, reputation, and conflicts of interest. It introduces quantitative thresholds for presuming adequate experience, requiring ten years for executive CEOs and five years for executive directors, alongside specific requirements for supervisory roles. The document further regulates the assessment process, interview procedures, and decision-making powers, ensuring alignment with CRD IV and EBA guidelines without introducing new legal requirements.
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