ECB issues guidance to underline its focus on Governance focusing on the selection of Directors and the effectiveness of the Board
Do you comply with ECB’s guidance on fit and proper? Is your Board prepared to be supervised and interviewed by ECB?
ECB published guidance earlier this month on the “guide to fit and proper assessments”. This is the first time the banking union supervisor outlines not only specific requirements for fit and proper directors but also the process for ECB and National Supervisors to assess Directors and the effectiveness of the Board as a governance body.
The guidance identifies criteria for Director suitability:
- Conflict of interest
- Time commitment
- Collective suitability
The ECB also outlines the process to “approve” new Directors or changes including a step by step process to remove unsuitable Directors.
This is expected to be the first step in ECB’s efforts to upgrade and standardize the supervision of corporate governance.
The Deloitte team can support you with readiness on ECB’s supervisory process
- Evaluation of BoD members on all fit and proper criteria
- BoD trainings and best practices (technical trainings, mock interviews etc)
- BoD performance evaluation and director remuneration benchmarking
- Corporate governance evaluation (committees, decision making process, documentation of work)
Please feel free to request a free workshop.