On Apr. 15, 2025, EBA published updated guidelines compliance table, indicating which competent authorities comply or intend to comply, applicable May 15, 2025.
So far CZC CB, GRE CB, CRO CB, ESP CB, LTH CB, NLD CB, AUT CB all indicated their compliance with the guidelines, SWI FI, ICE CB indicated their intention to comply.
ESAs (EIOPA, EBA, ESMA) launched second public consultation on joint guidelines on the system for the exchange of information relevant to fit and proper assessments.
Consultation on system by ESAs for exchange of information relevant to assessment of fitness and propriety of holders of qualifying holdings, directors, key function holders of financial institutions and financial market participants by competent authorities.
Adequate governance of financial institutions requires control/management by fit and proper persons and the prevention of such roles from those who are not fit and proper.
To achieve this, fit and proper assessments by competent authorities are critical.
Success of such assessments requires the authorities to access relevant information.
New Art 31a added to Reg 1093/2010, Reg 1094/2010, Reg 1095/2010 tasks ESAs to establish a system for exchange of information relevant to fit and proper assessments.
ESAs therefore both committed and under legal obligation to establish such a system.
The competent authorities performing such assessments will include the relevant information consistent with these Guidelines in the ESAs Information System.
Aim of the ESAs Information System is to support competent authorities identifying other competent authorities that have conducted such an assessment process for a person of interest, thereby enhancing the efficiency of the fit and proper assessments.
In line with the applicable data protection requirements only limited and necessary information will be stored in the system, accessible on a strict need to know basis.
Guidelines aim to increase the efficiency of the information exchange between sectoral supervisors by harmonising practices and covering both natural and legal persons.
ESAs invite comments only on the inclusion of legal persons in the scope of the Guidelines and the information to be exchanged in relation to them.
Other comments will not be considered as they were part of the first consultation.
Consultation End
The consultation runs until Jan. 15, 2024.
Nov. 20, 2024 Final Report and Guidelines
On Nov. 20, 2024, EBA, EIOPA and ESMA issued report containing joint guidelines on the system for exchange of information relevant to fit and proper assessments.
Guidelines aim to ensure consistent, effective European System of Financial Supervision (ESFS) supervision, facilitate information exchange between supervisors.
The joint guidelines apply to competent authorities within the ESFS, focus on 2 main areas: using the fitness and propriety information system; and information exchange between competent authorities when conducting fitness and propriety assessments.
As no responses were received to the second consulation starting Dec. 7, 2023, there have been no changes to the guidelines proposals in that consultation.
Competent authorities to which the guidelines apply should comply by incorporating them into their supervisory practices of regulatory framework as appropriate.
Expected date of application of the joint guidelines is the day of the publication of translations in all official EU languages, competent authorities are expected to comply with parts of the joint guidelines at a later stage which will be confirmed in due course.
Competent authorities must notify the respective ESA whether they comply or intend to comply by two months after publication of translations of the joint guidelines.
Feb. 17, 2025 Translations Published
On Feb. 17, 2025, ESMA published the translations of the Joint ESA Guidelines on the system for the exchange of information relevant to fit and proper assessments.
Guidelines apply from Feb. 17, 2025, except paragraphs 4, 11, 12, 13, 14, 15, 16, 17, 18, 19, which will apply from May 15, 2025 for assessments of natural persons.
And which will apply from Apr. 30, 2026 for assessments of legal persons, a further exception is paragraph 7.2 (a-e), which will apply from Jan. 30, 2026.
Competent authorities to include available historical data on natural persons for last 5 years, calculated from Feb. 17, 2025, in ESA information system by May 15, 2025.
And should include available historical data on legal persons for the last 2 years calculated from Jan. 30, 2026 in the ESA information system by Apr. 30, 2026.
In the absence of an LEI for legal persons, other registration numbers and also the country of incorporation should be inputted into the ESA information system.
Apr. 15, 2025 Compliance Table
On Apr. 15, 2025, EBA published updated guidelines compliance table, indicating which competent authorities comply or intend to comply, applicable May 15, 2025.
So far CZC CB, GRE CB, CRO CB, ESP CB, LTH CB, NLD CB, AUT CB all indicated their compliance with the guidelines, SWI FI, ICE CB indicated their intention to comply.
