EBA and ESMA launch consultation to revise joint guidelines for assessing the suitability of members of the management body and key function holders
Combating money laundering and terrorist financing is crucial for maintaining stability and integrity in the financial system. Therefore, uncovering any involvement of credit institutions and investment firms in money laundering and terrorist financing can have an impact on the viability and trust in the financial system. In this context, the draft joint Guidelines clarify that the knowledge, experience and skill requirements are important aspects in the fit and proper assessment of members of the management body and key function holders as they contribute to identifying, managing and mitigating money laundering and financing of terrorism risks.
These draft joint Guidelines also clarify that being a member of affiliated companies or affiliated entities does not in itself represent an obstacle for a member of the management body to acting with independence of mind.
The Guidelines further specify that a gender-balanced composition of the management body is of particular importance. Institutions should respect the principle of equal opportunities for any gender and take measures to improve a more gender-balanced composition of staff in management positions.
The draft joint Guidelines also take into account the recovery and resolution framework introduced by the Bank Recovery and Resolution Directive (BRRD) and provide further guidance in this regard. As part of early intervention measures and during resolution, the suitability of newly appointed members of the management body and of the management body collectively is relevant and requires an assessment.
Finally, the draft joint Guidelines consider the new legislative framework for investment firms adopted in 2019 for the identification of the investment firms subject to the various guidelines.
Consultation process
The EBA and the ESMA invite stakeholders to send comments solely on the amendments to the joint EBA and ESMA Guidelines on the assessment of the suitability of members of the management body and key function holders as shown in the tracked changes version. Comments to this consultation can be sent to the EBA by clicking on the “send your comments” button on the consultation page. Please note that the deadline for the submission of comments is 31 October 2020.
A public hearing will take place on 1 October 2020 from 14: 00 to 16:00. All contributions received will be published following the end of the consultation, unless requested otherwise.
Legal basis and next steps
These draft Guidelines have been developed on the basis of according to Article 91 (12) of Directive 2013/36/EU (CRD) and Article 9 of Directive 2014/65/EU.
The joint EBA and ESMA Guidelines will apply to Competent Authorities across the EU, as well as to institutions on a solo and consolidated basis. Once the revised Guidelines will enter into force, the 2017 Guidelines will be repealed.
ESMA withdraws registration of NEX Abide Trade Repository AB
The European Securities and Markets Authority (ESMA), the EU’s Securities Markets Authority, has today withdrawn the trade repository (TR) registration of NEX Abide Trade Repository AB (NATR).
NATR has been registered as a TR since 24 November 2017.
The withdrawal decision follows the official notification to ESMA by NATR of its intention to renounce its registration as a TR under the conditions set out in Article 71(1)(a) of EMIR.
Point (a) of Article 71(1) of EMIR provides that without prejudice to Article 73, ESMA shall withdraw the registration of a trade repository where the trade repository “expressly renounces the registration or has provided no services for the preceding six months”.
ESMA has updated its list of authorised trade repositories in the EU.
European Cooperation: Thessaloniki is the first ‘Authenticity’
July 31, 2020 News
European Cooperation: Thessaloniki is the first ‘Authenticity’
On 30 July 2020, under the framework of the European Cooperation Project (ECP8) ‘European Network of Authenticities’, the Municipality of Thessaloniki (Greece) became the first certified ‘Authenticity’.
Following a Memorandum of Understanding signed between the Hellenic Industrial Property Organisation (OBI) and the Municipality of Thessaloniki, in cooperation with the Metropolitan Area of Thessaloniki, the Chamber of Tradesmen, the Economic chamber of Thessaloniki and the Chamber of Small and Medium-Sized Enterprises of Thessaloniki, a series of IP-related awareness-raising activities will take place locally over the next two years in the newly certified Authenticity.
This European Cooperation Project aims to raise awareness of both the value of IP, and the damage caused by counterfeiting in European cities among local policymakers, businesses and, ultimately, the European public.
Thessaloniki is Greece’s second city, in terms of population, and is the second largest port in the country. With its dynamic economic activity, Thessaloniki is also one of the biggest educational centres in south-eastern Europe and a well-known city for culture and tourism.
Through this project, the OBI, in cooperation with its stakeholders, will become the key national player in the fight against counterfeiting on a local level.
Montenegro: EIB supports the reconstruction of major roads with €40 million
- €40 million investment from the EU bank for the rehabilitation and upgrade of 180 km of road on five main routes across the country.
- The project will create 4 100 temporary jobs and increase road safety and trade.
- The EIB loan is complemented by the first technical assistance grant awarded in the Western Balkans (€1.5 million) under the Economic Resilience Initiative.
The European Investment Bank (EIB) signed a second tranche worth €40 million for the rehabilitation of 180 kilometres of road along the five main routes in Montenegro. The loan from the EU bank is complemented by a €1.5 million technical assistance grant awarded under the Economic Resilience Initiative (ERI). It is the first ERI grant to be awarded to a project in the Western Balkans. The total EIB investment worth €80 million is expected to increase road safety and efficiency and facilitate faster economic recovery and regional trade.
ERI technical assistance grants increase economic resilience and support sustainable growth, employment and vital infrastructure in countries in EU neighbourhoods most affected by the migrant crisis. In this case, the ERI technical assistance grant aims to help the promoter develop a modern standardised approach and higher quality supervision in line with EU standards.
The modernisation of roads and increased safety along the reconstructed sections will reduce vehicle operating costs, commute times and the frequency of road accidents. Some 4 100 temporary jobs will be created under this project, supporting the private sector in Montenegro.
EIB Vice-President Dario Scannapieco said: “Revitalisation of the transport infrastructure remains highly important for smoother trade, employment and the overall economic recovery of the Western Balkans. Improved capacity of the local economies to absorb and respond to crises creates an environment for economic growth and job creation. By rehabilitating one quarter of the entire national road network in Montenegro, we aim to support regional connectivity and reinforce integration between the Western Balkan countries and the EU. Access to safe and modern roads should not be a privilege, but a necessity for all in our efforts towards increased competitiveness, sustainability and faster EU accession.”
Aivo Orav, EU Ambassador and Head of the EU Delegation to Montenegro said: “In times of an unprecedented health and economic crisis, this financial package from the EIB is very welcome news. Fostering job creation and regional economic ties on the one hand and improving road safety and saving lives on the other is a winning combination. This is especially important for Montenegro as, according to a recently completed EU-funded road safety assessment, 55% of the roads in Montenegro feature as ‘the least safe performing roads’. In addition to avoiding human tragedies, improving road safety has high economic returns. Investment in this area is therefore economically justified and will always be doubly rewarding. Combined with EU-funded projects that the EU Delegation is already implementing on the ground, this EIB support will further contribute to boosting the economy, trade and job creation, as well as making the road transport sector more modern, efficient and safe for the public.”
The loan will enable the upgrade of sections of road along the corridor between Tivat and the port of Bar, between the northern city of Danilovgrad and the capital Podgorica, and between Lepenac and the Spiljani border crossing. Sections of road between Ribarevina and Dobrakovo, and Pljevlja and Mihajlovica – both at the border with Serbia – will also be reconstructed. The first tranche under this loan was signed in November 2018.
Background information
About the Economic Resilience Initiative:
The Economic Resilience Initiative (ERI) was created in 2016 in response to a call from the European Council. The objective of the initiative is to help shift patterns of migration in the medium to long term and provide support to forcibly displaced populations by increasing the resilience of economies to future shocks. The ERI is doing this by mobilising finance to support growth, job creation, vital infrastructure projects and social cohesion in the EU’s neighbouring regions.
About the EIB in Montenegro:
The EU bank has been active in Montenegro since 1977 and has provided €890 million of loans to the country, mostly in support of small and medium-sized enterprises (SMEs), education and transport infrastructure in the country. In 2019 alone, the EIB signed loans worth €141 million, focusing on support for SMEs and the construction of additional education facilities across the country.
More information regarding the EIB’s projects in Montenegro
About the EIB in the Balkans:
The EIB is one of the leading international financiers in the Western Balkans. Since 2007, the Bank has financed projects totalling almost €8 billion in the region. Besides continuing its support for the reconstruction and upgrade of public infrastructure, since 2010 the EIB has expanded into many new areas, such as healthcare, research and development, education and SMEs.
Detailed information on the EIB’s activities in the Western Balkans
About Team Europe and the COVID-19 response in the Western Balkans:
As part of the #TeamEurope strategy, the EU’s global response to COVID-19, the EIB Group has rapidly mobilised €5.2 billion outside the EU, accelerating financing and targeted technical assistance. For the Western Balkan countries specifically, the EIB has prepared an immediate support package of €1.7 billion, primarily for SMEs and the healthcare sector. The EU has also mobilised €53 million in grants for the healthcare sector in Montenegro, of which €3 million will be used to procure life-saving medical equipment, including medical ventilators, digital mobile X-ray devices, testing kits and personal protective gear. The remaining €50 million will be used to address the socio-economic impact of the outbreak, including support for the most affected businesses, such as companies working in the tourism and transport sectors (https://www.eib.org/en/press/all/2020-111-eib-group-to-contribute-eur1-7-billion-to-the-eu-s-covid-19-response-package-for-the-western-balkans). The total EU financial support package for the Western Balkans amounts to more than €3.3 billion.