On 20 November 2024, the European Supervisory Authorities (EBA, EIOPA, and ESMA – collectively known as the ESAs) published Joint Guidelines on the system for exchanging information related to the assessment of fitness and propriety of holders of qualifying holdings, directors and key function holders of financial institutions (commonly referred to as Fit & Proper assessments).
The Guidelines, developed in accordance with Article 31(a) of the ESAs’ Founding Regulations, are directed at the European System of Financial Supervision (ESFS) and focus on two key aspects:
- Use of the Fit & Proper (F&P) information system.
- Exchange of information and cooperation among competent authorities during fitness and propriety assessments.
The main goal of the Guidelines is to ensure consistent and effective supervisory practices across the ESFS. By promoting efficient information exchange between competent authorities, they aim to support the sound management of financial institutions and enhance the protection of consumers and investors.