Summary of CySEC's Circular C483

Memo #02-2022
CySEC Circular No: C483
Date: 18/01/2022
Subject: ESMA & EBA Joint Guidelines (ESMA35-36-2319) on the assessment of the suitability of members of the management body and key function holders
Purpose: To remind CIFs for the Guidelines on the assessment of the suitability of members of the management body and key function holders.

In Summary:

CySEC has issued the Circular C483 on 18/01/2022 to remind the Cyprus Investment Firms (CIFs) that the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) published on July 2, 2021, their revised final joint Guidelines on the assessment of the suitability of members of the management body and key function holders (the ‘Guidelines’), translated in all official languages of the EU.

These Guidelines also take into account the amendments introduced by the revised Capital Requirements Directive (CRD V) and the Investment Firms Directive (IFD), as well as the new legislative framework for investment firms adopted in 2019 by the Investment Firms Regulation (IFR).

The purpose of these Guidelines is to specify the requirements regarding the suitability of members of the management body in particular, the notions of sufficient time commitment; honesty, integrity and independence of mind of a member of the management body; adequate collective knowledge, skills and experience of the management body; and adequate human and financial resources devoted to the induction and training of such members.

These Guidelines are applicable from 31 December 2021. 

These Guidelines have updated and repealed the previous version of the EBA Guidelines on the assessment of the suitability of members of the management body and key function holders (EBA/GL/2017/12) of 26 September 2017. To this effect, CySEC notes that the CySEC Circular E275 of 17 July 2018 is also revoked.

CySEC informs that it has adopted these Guidelines by incorporating them into its supervisory practices and regulatory approach and CIFs to which these Guidelines apply should take the necessary actions in order to ensure their compliance with the Guidelines.


The Capital Requirements Directive (CRD V) can be found on the following link: https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32019L0878&from=EN 

The Investment Firms Directive (IFD) can be found on the following link: https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32019L2034&from=en 

Investment Firms Regulation (IFR) can be found on the following link: https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32019R2033&from=EN

Read the CySEC Circular C483

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