ESAs consult on management body suitability guidelines

EBA and ESMA have published a joint consultation on updating their guidelines on assessing the suitability of members of the management body and key function holders in regulated firms. The revised guidelines

•  stress the importance of the role these individuals play in combatting financial crime, and to stress the importance of knowledge, experience and skills that can help to identify, manage and mitigate relevant risks;
• clarify that being a member of the management of affiliated entities does not of itself preclude the ability to act with independent mind;
• stress the importance of gender balance;
• provide further guidance on the role of the management body in recovery and resolution; and
• take into account the new investment firms prudential requirements.

Consultation closes on 31 October.