EBA publishes its final Guidelines on internal governance

The European Banking Authority (EBA) published today its revised Guidelines on internal governance. The update takes into account the ... Skiptomaincontent Home» News&press» EBApublishesitsfinalGuidelinesoninternalgovernance Followuson: EBApublishesitsfinalGuidelinesoninternalgovernance 02July2021 TheEuropeanBankingAuthority(EBA)publishedtodayitsrevisedGuidelinesoninternalgovernance.TheupdatetakesintoaccounttheamendmentsintroducedbythefifthCapitalRequirementsDirective(CRDV)andtheInvestmentFirmsDirective(IFD)inrelationtocreditinstitutions’soundandeffectivegovernancearrangements,inparticularwithregardtogenderdiversity,moneylaundering,financingterroristriskandthemanagementofconflictsofinterest,includinginthecontextofloansandothertransactionswithmembersofthemanagementbodyandtheirrelatedparties.ThefinalrevisedGuidelineswillapplyfrom31December2021. Combatingmoneylaunderingandterroristfinancingiscrucialformaintainingstabilityandintegrityinthefinancialsystem.Therefore,uncoveringanyinvolvementofcreditinstitutionsandinvestmentfirmsinmoneylaunderingandterroristfinancingcanhaveanimpactontheviabilityandtrustinthefinancialsystem.Inthiscontext,theseGuidelinesclarifythatidentifying,managingandmitigatingmoneylaunderingandfinancingofterrorismriskispartofsoundinternalgovernancearrangementsandcreditinstitutions’riskmanagementframework. TherevisedGuidelinesfurtherspecifyandreinforcetheframeworkregardingloanstomembersofthemanagementbodyandtheirrelatedparties.Thoseloansmayconstituteaspecificsourceofactualorpotentialconflictofinterestand,therefore,specificprovisionshavebeenexplicitlyincludedintheDirectiveCRD.Inthesameway,othertransactionswithmembersofthemanagementbodyandtheirrelatedpartieshavethepotentialtocreateconflictsofinterestand,therefore,theEBAisprovidingguidanceonhowtoproperlymanagethem. Finally,inlinewiththerequirementtohaveagender-neutralremunerationpolicy,therevisedGuidelinesprovidenewguidanceonthecodeofconducttoensurethatcreditinstitutionstakeallnecessarymeasurestoavoidanyformofdiscriminationandguaranteeequalopportunitiestostaffofallgenders.Inaddition,institutionsshouldmonitorthegenderpay-gap. Legalbasisandnextsteps TheseGuidelineshavebeendevelopedonthebasisofArticle74ofDirective2013/36/EU,whichmandatestheEBAtofurtherharmonisecreditinstitutions’governancearrangements,processesandmechanismsacrosstheEU. TheEBAGuidelineswillapplytoCompetentAuthoritiesacrosstheEU,aswellastocreditinstitutionsonanindividualandconsolidatedbasis.OncetherevisedGuidelineswillenterintoforceon31.12.2021,the2017Guidelineswillberepealed. Documents FinalreportonGuidelinesoninternalgovernanceunderCRD Links Guidelinesoninternalgovernance(secondrevision) EBApublishesitsfinalrevisedGuidelinesonsoundremunerationpolicies EBAandESMApublishfinalguidanceonfitandproperrequirements Internalgovernance Presscontacts FrancaRosaCongiu [email protected]|+33186527052|Follow@EBA_News