Internal governance

EU legislation requires that institutions have robust governance arrangements, including a clear organisational structure, well defined lines of responsibility, effective risk management processes, control mechanisms and remuneration policies. The internal governance should be appropriate to the nature, scale and complexity of the institution. The main responsibility for internal governance lies with the management body, which is subject to specific suitability requirements. In this respect, the EBA published Guidelines on internal governance and in particular on the assessment of the suitability of members of the management body.

Technical Standards, Guidelines & Recommendations

  • Recommendations on outsourcing to cloud service providers

    These recommendations intend to clarify the EU-wide supervisory expectations if institutions intend to adopt cloud computing, so as to allow them to leverage the benefits of using cloud services, while ensuring that any related risks are adequately identified and managed.

    Status: Under development

  • Guidelines on internal governance (revised)

    These draft Guidelines aim at further harmonising institutions’ internal governance arrangements, processes and mechanisms across the EU, in line with the new requirements in this area introduced in the Capital Requirements Directive (CRD) and also taking into account the proportionality principle.

    Status: Final (awaiting translation into the EU official languages)

  • Joint ESMA and EBA Guidelines on the assessment of the suitability of members of the management body

    The draft Guidelines aim at further improving and harmonising suitability assessments within the EU financial sectors and so ensure sound governance arrangements in financial institutions.”

    Status: Final (awaiting translation into the EU official languages)

  • Guidelines on the remuneration benchmarking exercise

    These Guidelines are meant to increase the consistency of information collected on the remuneration practices of credit institutions and investment firms in order to benchmark remuneration trends. As requested by the Capital Requirements Directive, national competent authorities shall collect the information and benchmark remuneration trends at national level while the EBA is in charge of performing the benchmarking at European level. The updates to these Guidelines, which had originally been published on 27 July 2012, follow on from changes in reporting requirements as laid down in the Capital Requirements Directive and Regulation (CRDIV and CRR).

    Status: Final and translated into the EU official languages

Opinions, Reports and other Publications