2. Suitability requirements for significant institutions subject to direct supervision by the ECB under the SSM Regulation
Regulatory framework:
- Articles 4 and 6 of the SSM Regulation[1]
- Articles 93 and 94 of the SSM Framework Regulation[2]
- Articles 3, 83°, 11, 19, 20, 21, 27-31, 60, 61, 62, 62/1, 72, 86, 168 and 212 of the Banking Law[3]
- Royal Decree of 8 February 2022 approving the Regulation of the National Bank of Belgium of 9 November 2021 on the exercise of external functions by managers and persons responsible for independent control functions of regulated companies
- Royal Decree of 15 April 2018 approving the Regulation of the National Bank of Belgium of 6 February 2018 on expertise of heads of the compliance function
- Communication NBB_2022_19 of 12 July 2022 on the exercise of external functions by managers and persons responsible for independent control functions of regulated companies
- Circular NBB_2021_27 of 16 November 2021 transposing the 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)
- Communication NBB_2021_04 of 19 January 2021 on the HIVE project and the digitalisation of the fit and proper process
- Circular NBB_2018_25 of 18 September 2018 on the suitability of directors, members of the management committee, responsible persons of independent control functions and senior managers of financial institutions (the circular introducing this Manual)
- Circular NBB_2017_21 of 7 July 2017 on loans, credits and guarantees to managers, shareholders and related persons
- Governance Manual for the banking sector (new version of 2022)
- 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)
- EBA Guidelines of 2 July 2021 on internal governance (EBA/GL/2021/05)
- SSM Guide to fit and proper assessments of December 2021
- Basel Committee on Banking Supervision (BCBS) Principles: Principles 2 and 4
2:1 Directives 2013/36/EU[4] (CRD) and 2014/65/EU (MIFID II)[5] lay down various provisions that empower the European Banking Authority (EBA) to issue guidelines on individual and collective suitability requirements for members of the statutory governing body, senior managers and key function holders within credit institutions, investment firms, financial holding companies and mixed financial holding companies.
2:2 In this context, the EBA on 2 July 2021 issued Guidelines EBA/GL/2021/06, which must be applied as of 31 December 2021. The NBB relies on these guidelines in monitoring the suitability requirements. Unless expressly provided otherwise, institutions should therefore apply and comply with these guidelines as a complement to and clarification of the legal provisions on suitability requirements. This aspect is further explained in Circular NBB_2021_27 of 16 November 2021 transposing these guidelines.
2:3 Furthermore, in December 2021, the ECB published a new version of its Guide to fit and proper assessments (“SSM Guide”), which aims to harmonise the application of suitability assessment criteria with a view to establishing common prudential practices among participating Member States. The NBB and the ECB also rely on this SSM Guide, as part of the Single Supervisory Mechanism, and recommend that relevant institutions take it into account.
[1] Council Regulation (EU) No 1024/2013 of 15 October 2013 conferring specific tasks on the European Central Bank concerning policies relating to the prudential supervision of credit institutions.
[2] Regulation (EU) No 468/2014 of the European Central Bank of 16 April 2014 establishing the framework for cooperation within the Single Supervisory Mechanism between the European Central Bank and national competent authorities and with national designated authorities.
[3] Law of 25 April 2014 on the legal status and supervision of credit institutions.
[4] Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC.
[5] Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU.