On 25 February 2026, the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) launched a consultation paper on the revised joint guidelines on the assessment of the suitability of members of the management body and key function holders.
Background
The EBA-ESMA joint guidelines on the notions of suitability and on the assessment of suitability by institutions, investment firms and competent authorities are intended to improve and harmonise the assessment of suitability within the EU financial sector, and to ensure sound governance arrangements in entities. The guidelines apply to institutions and investment firms, independent of their governance structures (unitary board, dual board or other structures), without advocating or preferring any specific structure as set out in the defined scope of application.
Revisions
The draft revised EBA-ESMA joint guidelines take into account new requirements introduced by the revised Capital Requirements Directive (CRD) for large institutions and include updates applying to entities covered by the CRD and to investment firms within the scope of Markets in Financial Instruments Directive. For instance, the revisions take into account the new CRD requirements for third country branches. The revised guidelines also introduce targeted simplification and streamlining measures designed to reduce administrative burden and provide greater flexibility and clarity for institutions and supervisors.
Next steps
The deadline for comments on the consultation paper is 25 May 2026.
A public hearing on the revised guidelines will take place on 15 April 2026 from 14:00 to 15:30.