EBA Guidelines on internal governance of banks and investment firms published

On 26 September 2017, the EBA (European Banking Authority) published the final version of Guidelines on internal governance for banks and investment firms in accordance with Article 74 of Directive 2013/36/EU (CRD IV).

The Guidelines, which apply to all affected institutions regardless of their management and supervisory structure, define the role and responsibility of the management and supervisory bodies and identify three different lines of internal responsibility: the business lines, the risk management and compliance function and the internal audit function.

The provisions emphasise the duties and responsibilities of the management body in regard to its supervisory function in monitoring risk, including the role of committees. Their objective is to improve the status of the risk management function by enhancing the flow of information between the risk management function and the management body and assuring effective monitoring of risk governance by the supervisory authorities.

The Guidelines will apply starting on 30 June 2018, on which date the preceding EBA Guidelines on internal governance published on 27 September 2011 will cease to apply.

Downolad the documenthere aside