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Fit and Proper Assessments of Management Board (MB) Members and Key Function Holders (KFH)


The assessment of suitability of the members of the management body and key function holders of Authorised Credit Institutions ("ACIs") operating in the Republic of Cyprus, is carried out by the Central Bank of Cyprus in accordance with the provisions of section 18 of the Business of Credit Institutions Laws of 1997, as subsequently amended ("the Law") and of the Directive on the Assessment of Suitability of the Members of the Management Body and Key Function Holders of Authorised Credit Institutions of 2020 ("Directive").

 

ACIs are expected to perform an assessment and reassessment of the suitability of the members of the management body and key function holders in order to ensure, at all times, the:

  • personal suitability of the members of the management body,
  • collective suitability of the management body, and
  • suitability of the key function holders.

 Suitability means the degree to which a person, both personally and collectively with other persons:

  • is of good repute,
  • has sufficient knowledge, skills and experience to fulfil his/her duties,
  • is able to commit sufficient time in the performance of his/her duties (for a person assessed for the position of a member of the management body only),
  • acts with honesty, integrity,
  • acts with independence of mind (for a person assessed for the position of a member of the management body only).

 The ACIs submit to the Central Bank of Cyprus:

  • The Personal Questionnaire and the required documents/reports provided for in Part 9 of the Questionnaire, as completed for each person assessed for the position of a member of the management body or for a key function in the ACI.
  • The assessment carried out by the ACI for each person assessed for the position of a member of the management body or for the appointment of a key function holder.
  • The assessment of collective suitability of the members of the management body for which, the ACI may use, by adapting on a case-by-case basis, the Sample Template for the Assessment of Collective Suitability of Members of the Management Body of ACI, in accordance with the provisions of paragraph 11 and Part VII of the Directive.

 As provided by Regulation (EU) No 468/2014, the Central Bank may forward the result of the assessments to the European Central Bank when the supervised institution is a significant supervised entity.

 

Directive on the Assessment of Suitability of the Members of the Management Body and Key Function Holders of Authorised Credit Institutions of 2020

Personal Questionnaire for the Assessment of Suitability of the Members of the Management Body and Key Function Holders of Significant ACIs and the national specifities document

Personal Questionnaire for the Assessment of Suitability of the Members of the Management Body and Key Function Holders of Less Significant ACIs 

Sample Template for the Assessment of Collective Suitability

 

Page last updated 6 June 2022