Featured Product

    EBA Proposes to Revise Guidelines on Internal Governance

    July 31, 2020

    EBA launched a consultation on revisions to the guidelines on internal governance of certain entities in EU. The guidelines will apply to competent authorities across EU as well as to credit institutions on a solo and consolidated basis. This review takes into account amendments introduced by the fifth Capital Requirements Directive (CRD5) and the Investment Firms Directive in relation to sound and effective governance arrangements of credit institutions. The consultation runs until October 31, 2020 and the amended guidelines are expected to enter into force on June 26, 2021.

    The proposed guidelines clarify that identifying, managing, and mitigating money laundering and financing of terrorism risk is part of sound internal governance arrangements and risk management framework of credit institutions. The draft guidelines further specify and reinforce the framework regarding loans to members of the management body and their related parties. Such loans may constitute a specific source of actual or potential conflict of interest and, therefore, specific requirements have been explicitly included in CRD (Directive 2013/36/EU). Similarly, other transactions with members of the management body and their related parties have the potential to create conflicts of interest and, therefore, EBA is providing guidance on how to properly manage them. Finally, in line with the requirement to have a gender-neutral remuneration policy, the consultation paper contains new guidance on the code of conduct to ensure that credit institutions take all necessary measures to avoid discrimination and guarantee equal opportunities to staff of all genders.

    The consultation paper indicates that the final guidelines would apply similarly to credit institutions and to investment firms that are subject to Title VII of CRD (Directive 2013/36/EU) in application of the Article 1(2) and (5) of Regulation 2019/2033/EU. The guidelines are based on an earlier set of guidelines on internal governance and add requirements that aim to foster a sound risk culture implemented by the management body, to strengthen the management body oversight of the activities of credit institutions and to strengthen the risk management frameworks of credit institutions. Additional guidelines have been provided to further increase the transparency of credit institutions’ offshore activities of credit institutions and to ensure the consideration of risks within change processes of credit institutions.

     

    Related Links

    Comment Due Date: October 31, 2020

    Effective Date: June 26, 2021 (Expected)

    Keywords: Europe, EU, Banking, Internal Governance, Governance, Guidelines, CRD, IFD, AML/CFT, EBA

    Featured Experts
    Related Articles
    News

    EBA Sets Out Work Priorities and Deliverables for 2021

    EBA published its annual work program for 2021. The work program describes the activities and deliverables for the coming year in the context of the six key strategic areas of work.

    September 30, 2020 WebPage Regulatory News
    News

    PRA Proposes to Amend SS11/13 on Internal Ratings-Based Approaches

    PRA is proposing, via the consultation paper CP14/20, to introduce two complementary expectations on the level of mortgage risk-weights in UK for banks applying the internal ratings-based approaches.

    September 30, 2020 WebPage Regulatory News
    News

    ECB Confirms Compliance of €STR with Financial Benchmark Principles

    ECB published its statement of compliance with the IOSCO principles for financial benchmarks developed by IOSCO.

    September 30, 2020 WebPage Regulatory News
    News

    OSFI Updates Timelines for Implementation of IFRS 17

    OSFI updated the timelines for implementation of IFRS 17 on insurance contracts.

    September 30, 2020 WebPage Regulatory News
    News

    IFRS Consults on Global Approach to Sustainability Reporting

    IFRS launched a consultation to assess the demand for global sustainability standards.

    September 30, 2020 WebPage Regulatory News
    News

    EIOPA Sets Out Work Priorities for 2021-2023

    EIOPA has set out the work priorities for 2021-2023, taking into account the current market situation in light of the COVID-19 pandemic.

    September 30, 2020 WebPage Regulatory News
    News

    US Agencies Finalize Three Interim Final Rules Issued Amid Pandemic

    US Agencies (FDIC, FED, and OCC) finalized three interim final rules that were published in March and April this year to ease the impact of disruptions caused by the COVID-19 pandemic.

    September 30, 2020 WebPage Regulatory News
    News

    US Agencies Finalize Interim Final Rules Issued Amid Pandemic

    US Agencies (FDIC, FED, and OCC) finalized two rules, which are either identical or substantially similar to the interim final rules in effect and issued earlier this year.

    September 29, 2020 WebPage Regulatory News
    News

    APRA Proposes to Increase Transparency of Banking Data

    APRA announced that it is resuming consultation on the confidentiality of data submitted to APRA by the authorized deposit-taking institutions.

    September 29, 2020 WebPage Regulatory News
    News

    EIOPA Consults on Use of Risk Mitigation Techniques Under Solvency II

    EIOPA is consulting on a supervisory statement on the use of risk mitigation techniques by insurance and reinsurance undertakings.

    September 29, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5873