Internal governance

EU legislation requires that institutions have robust governance arrangements, including a clear organisational structure, well defined lines of responsibility, effective risk management processes, control mechanisms and remuneration policies. The internal governance should be appropriate to the nature, scale and complexity of the institution. The main responsibility for internal governance lies with the management body, which is subject to specific suitability requirements. In this respect, the EBA published Guidelines on internal governance and in particular on the assessment of the suitability of members of the management body.

Technical Standards, Guidelines & Recommendations

  • Guidelines on outsourcing arrangements

    These draft Guidelines provide a clear definition of outsourcing and specify the criteria to assess whether or not an outsourced activity, service, process or function (or part of it) is critical or important. The Guidelines, which review the existing CEBS Guidelines on outsourcing published in 2006, aim at establishing a more harmonised framework for outsourcing arrangements of all financial institutions in the scope of the EBA’s action.

    Status: Under development

  • Recommendations on outsourcing to cloud service providers

    These recommendations intend to clarify the EU-wide supervisory expectations if institutions intend to adopt cloud computing, so as to allow them to leverage the benefits of using cloud services, while ensuring that any related risks are adequately identified and managed.

    Status: Final and translated into the EU official languages

  • Guidelines on internal governance (revised)

    These draft Guidelines aim at further harmonising institutions’ internal governance arrangements, processes and mechanisms across the EU, in line with the new requirements in this area introduced in the Capital Requirements Directive (CRD) and also taking into account the proportionality principle.

    Status: Final and translated into the EU official languages

  • Joint ESMA and EBA Guidelines on the assessment of the suitability of members of the management body

    The draft Guidelines aim at further improving and harmonising suitability assessments within the EU financial sectors and so ensure sound governance arrangements in financial institutions.”

    Status: Final and translated into the EU official languages

  • Guidelines on the remuneration benchmarking exercise

    These Guidelines are meant to increase the consistency of information collected on the remuneration practices of credit institutions and investment firms in order to benchmark remuneration trends. As requested by the Capital Requirements Directive, national competent authorities shall collect the information and benchmark remuneration trends at national level while the EBA is in charge of performing the benchmarking at European level. The updates to these Guidelines, which had originally been published on 27 July 2012, follow on from changes in reporting requirements as laid down in the Capital Requirements Directive and Regulation (CRDIV and CRR).

    Status: Final and translated into the EU official languages

  • Guidelines on the data collection exercise regarding high earners

    These Guidelines are meant to increase the consistency of information collected on the number of individuals per credit institution in pay brackets of at least 1 million Euros. As requested by the Capital Requirements Directive, national competent authorities shall collect such information for all credit institutions and the EBA shall disclose the data collected on an aggregate home Member State basis. The updates to these Guidelines, which had originally been published on 27 July 2012, follow on from changes in reporting requirements as laid down in the Capital Requirements Directive and Regulation (CRDIV and CRR).

    Status: Final and translated into the EU official languages

  • Guidelines on the assessment of the suitability of members of the management body and key function holders

    These Guidelines set out the process, criteria and minimum requirements for assessing the suitability of members of the management body and key function holders. Their ultimate aim is to ensure robust governance arrangements and appropriate oversight. The Guidelines contain provisions to be followed by both credit institutions and competent authorities when assessing the suitability of all members of the management body and extend also to key function holders. Moreover, as financial and mixed financial holding companies have significant influence on their credit institutions, they are also included in the scope of the Guidelines.

    Status: Final and translated into the EU official languages

  • Guidelines on Internal Governance

    The Guidelines consolidate and update former guidelines on Internal Governance and incorporate new chapters on the transparency of the corporate structure, the role, tasks and responsibilities of the supervisory function and on IT-systems and business continuity management. Their aim is to enhance and consolidate supervisory expectations and ultimately to improve the sound implementation of internal governance arrangements.

    Status: Final and translated into the EU official languages

  • Guidelines on outsourcing

    The Guidelines aim at promoting an appropriate level of convergence in supervisory approaches to outsourcing. The Guidelines are based on current supervisory and market practices and also take into account international and European developments in the field of outsourcing.

    Status: Final and translated into the EU official languages

Opinions, Reports and other Publications

 

Reports

Opinions