Persons exercising key functions in credit institutions are subject to specific approval by the Luxembourg financial regulator, the Commission de Surveillance du Secteur Financier (CSSF).
In the following article published in ILO's (International Law Office) newsletter, Josée Weydert, Jad Nader and Meliha Dacic overview the CSSF's recently published guidelines on the new prudential approval procedure, applicable as of February 6 2015.
Internal procedures relating to appointment of relevant persons
In order to ensure that all relevant persons fulfil the criteria pertaining to the required knowledge, skills, experience and good repute, each person shall be individually assessed by his or her relevant institution. The assessment will be conducted on the basis of the principles, policies and procedures governing the appointment and succession of the relevant persons that each institution is required to put in place. These principles and procedures must be documented in writing and comply with Circular 12/552 and the guidelines on the assessment of the suitability of members of the management body and key function holders published by the European Banking Authority.