Recital 45

(45) The purpose of assessing the suitability of members of management bodies is to ensure that those members are qualified for their role and are of good repute. Having a robust ‘fit-and-proper’ framework for assessing the suitability of members of the management body and key function holders is a crucial factor in ensuring that institutions are adequately run and their risks are appropriately managed. Existing rules do not ensure that there is a timely suitability assessment of members of the management body by the appointing institution. Furthermore, there are currently no rules for the suitability assessment of key function holders. Moreover, cross-border institutions must navigate through a wide diversity of national rules and processes, which reduces the efficiency of the current framework. The existence of considerably different requirements as regards the suitability assessment across the Union is a particularly relevant issue in the context of the banking union. As a result, it is important to lay down a set of rules at Union level to put in place a more consistent and predictable ‘fit-and-proper’ framework. This will foster supervisory convergence, further enable trust between competent authorities and provide more legal certainty to institutions. ‘Fit-and-proper’ assessments are an important supervisory element along with other mechanisms such as the supervisory review and evaluation process and remuneration rules that together ensure sound governance of institutions.

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Source: EUR-Lex CELLAR · retrieved 2026-09-04 · Text as adopted (Official Journal); later amendments are not incorporated in this text.