Through the Circular, CySEC wishes to inform the Regulated Entities that, it has adopted the joint Guidelines on the assessment of the suitability of the members of the management body and key function holders, issued by the European Securities and Markets Authority (“ESMA”) and the European Banking Authority (“EBA”). The Guidelines specify:
- the requirements regarding the suitability of members of the management body of credit institutions investment firms, financial holding companies and mixed financial holding companies. The notions of sufficient time commitment; honesty, integrity and independence of mind of a member of the management body; adequate collective knowledge, skills and experience of the management body; and adequate human and financial resources devoted to the induction and training of such members.
- the requirements regarding the suitability of the heads of internal control functions and the Chief Financial Officer (CFO) of credit institutions and certain investment firms, where they are not part of the management body, and, where identified on a risk-based approach by those institutions, of other key function holders and on the related assessment process, governance policies and practices, including the principle of independence applicable to certain members of the management body in its supervisory function.
CySEC’s expects that: Regulated Entities comply with the said Guidelines (which have entered into force on the 30th June 2018) and are adopted by CySEC in their entirety, except for the parts of Paragraphs 170-198, which will be adopted upon completion of CySEC’s Consultation Paper process.