PARIS, Feb. 25, 2026 — The European Banking Authority and the European Securities and Markets Authority launched a joint consultation on revised guidelines for assessing the suitability of members of the management body and key function holders at banks and investment firms across the European Union.
The revised joint guidelines form part of a broader package designed to harmonise suitability assessments and strengthen supervisory convergence across the European Union. The consultation runs until May 25, 2026.
Alignment with CRD and MiFID II
The draft revisions, set out in the Draft Joint ESMA and EBA Guidelines, reflect new requirements introduced under the revised Capital Requirements Directive (CRD) for large institutions and include updates applicable to entities covered by CRD as well as investment firms within the scope of the Markets in Financial Instruments Directive (MiFID II).
Among the updates, the guidelines address the use of ex-ante applications in cases where competent authorities conduct ex-post assessments and introduce mandatory suitability assessments for roles such as heads of control functions and chief financial officers. The draft also further specifies CRD requirements concerning third-country branches.
AML/CFT integration
The revised guidelines strengthen links with the anti-money laundering and countering the financing of terrorism (AML/CFT) framework. They provide guidance to competent authorities on identifying reasonable grounds to suspect money laundering or terrorist financing risks within suitability assessments.
According to the authorities, the revisions are intended to ensure that governance evaluations appropriately reflect AML/CFT considerations and broader supervisory expectations.
Simplification and streamlining measures
The draft guidelines introduce targeted simplification and streamlining measures designed to reduce administrative burden while providing greater clarity and flexibility for institutions and supervisors.
Consultation process and timeline
Stakeholders may submit comments through the EBA consultation page until May 25, 2026. Contributions received will be published on the EBA’s website following the conclusion of the consultation, unless confidentiality is requested.
A public hearing on the draft guidelines is scheduled for April 15, 2026, from 14:00 to 15:30.
In parallel, the EBA is consulting on draft Regulatory Technical Standards specifying the documentation and information that large institutions should submit to competent authorities.
Next steps
Once the revised guidelines enter into force, the 2021 joint guidelines on suitability assessments will be repealed.
