Consultation on draft Joint ESMA and EBA Guidelines on the assessment of the suitability of members of the management body and key function holders | European Banking Authority
This update concerns governance and personnel suitability assessments for financial institutions, which falls outside the payments-specific product and service taxonomy.
While investment firms may handle client money in payment contexts, this consultation focuses on management body fitness standards rather than payment service operations or infrastructure.
Specialism
While the update concerns suitability assessments for senior personnel at financial institutions, it does not directly address payment service providers, payment systems, or payment-specific regulatory obligations; the guidance applies broadly to banks and investment firms under EBA/ESMA frameworks rather than PSP-specific conduct rules.
This is a consultation on corporate governance and personnel fitness standards that falls outside the payments compliance taxonomy; it lacks direct relevance to payment-specific regulatory categories.
2026-02-26 10:05:25·tojuri@vixio.com
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TITLE: European Banking Authority and European Securities and Markets Authority Launch Consultation on Suitability Assessment Guidelines
BODY:
On 25 February 2026, the European Banking Authority (EBA) and European Securities and Markets Authority (ESMA) launched a joint consultation on draft guidelines for assessing the suitability of members of the management body and key function holders at financial institutions.
The consultation seeks feedback on revised guidelines that establish a framework for evaluating whether individuals are fit and proper to hold senior positions within banks and investment firms. The guidelines set out criteria and assessment procedures that competent authorities and financial institutions must apply when determining suitability. Key aspects covered include the assessment methodology, competence requirements, and integrity standards for management body members and key function holders. The joint approach by the EBA and ESMA ensures consistency in suitability assessments across the European Union's banking and securities sectors.
The guidelines apply to credit institutions and investment firms subject to EBA and ESMA regulatory frameworks. This update is significant as it modernises and harmonises existing suitability requirements, providing clearer standards for both regulators and institutions in evaluating senior personnel fitness and propriety.
The consultation period runs from 25 February 2026 to 25 May 2026. Responses must be submitted to the EBA by 23:59 on 25 May 2026. All contributions will be published after the consultation closes, unless respondents request confidentiality. The consultation paper, updated Annex I, and scope of application document are available on the EBA website.