The EBA and ESMA consult on revised suitability assessment requirements for banks and investment firms
The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) today launched a consultation on the revised joint guidelines on the assessment of the suitability of members of the management body and key function holders. The revised guidelines form part of a broader package designed to harmonise suitability assessments and ensure supervisory convergence across the EU. The consultation runs until 25 May 2026.
The draft revised EBA-ESMA joint guidelines new requirements introduced by the revised Capital Requirements Directive (CRD) for large institutions, and include updates applying to entities covered by CRD and to investment firms within the scope of Markets in Financial Instruments Directive (MiFID II). Stemming from CRD, the updates cover, among other elements, the use of ex‑ante applications for cases where competent authorities carry out ex‑post assessments, and mandatory suitability assessments for roles such as heads of control functions and chief financial officers. The guidelines also further specify new CRD requirements for third‑country branches, and strengthen links with the anti-money laundering and countering the financing of terrorism framework, providing guidance for identifying reasonable grounds to suspect money laundering or terrorist financing risks.
The revised guidelines introduce targeted simplification and streamlining measures designed to reduce administrative burden and provide greater flexibility and clarity for institutions and supervisors.
Consultation process
Stakeholders are invited to submit their comments on the revised joint EBA and ESMA Guidelines on the assessment of the suitability of members of the management body and key function holders using "send your comments" button on the EBA’s consultation page. The deadline for submitting comments is 25 May 2026. All contributions received will be published on the EBA’s website following the end of the consultation, unless requested otherwise.
A public hearing on the guidelines will take place on 15 April 2026 from 14:00 to 15:30.
The EBA is also consulting on its draft Regulatory Technical Standards (RTS) specifying the documentation and information that large institutions should submit to competent authorities.
Next steps
Once the revised Guidelines enter into force, the 2021 Guidelines will be repealed.
Further information:
Iris Hude
Communications Officer
press@esma.europa.eu