The European Supervisory Authorities (EBA, EIOPA, ESMA – ESAs) publish Joint Guidelines on the system for the exchange of information relevant to fit and proper assessments

To enhance the information exchange between supervisory authorities within the European Union, also across different parts of the financial sector, the ESAs have developed an ESAs F&P Information System. The Joint Guidelines clarify its use and how data can be exchanged.

The Joint Guidelines aim to ensure consistent and effective supervisory practices within the European System of Financial Supervision (ESFS) and facilitate information exchange between supervisors.

These Joint Guidelines apply to competent authorities within the ESFS and focus on two main areas:

1) use of the F&P Information System

2) information exchange and cooperation between the competent authorities when conducting fitness and propriety assessments.

Legal Basis and Background

The Joint Guidelines have been developed in accordance with Article 31(a) of the ESAs Founding Regulations, which mandate the ESAs to jointly establish a system for the exchange of information relevant to the assessment of the fitness and propriety of holders of qualifying holdings, directors and key function holders of financial institutions by competent authorities in accordance with the legislative acts referred to in Articles 1(2) of the ESAs Founding Regulations.

Fitness and propriety assessments of board members, key function holders and owners of qualifying holdings are key to contributing to the safe and sound management of financial institutions and are, therefore, fundamental to ensuring consumer and investor protection and trust in the EU financial sectors. They are a key supervisory tool for conducting ongoing supervision of the authorisation and governance processes of financial institutions and financial market participants.