Credit Institutions and Investment Firms: new prudential approval procedure of key function holders applicable as from 6th February 2015.

The CSSF set forth requirements regarding approval requests and notifications of resignation, and revocation of key function holders. Key function holders are listed as the directors and the members of the authorised management as well as the heads of the internal control functions… namely the chief compliance officer, the chief risk officer and the chief internal auditor.

The approval file shall include, in addition to copy the ID, a declaration of honour and detailed cv demonstrating the skills, experience and availability of the person, a confirmation by the institution that this appointment:

1. •has been duly approved by the board of directors or the nominations committee;
   

1. •complies with the guiding principles and the policies governing the appointment and succession to key functions laid down in writing by the institution;
   

1. • respects the institution’s internal policy and CSSF circular 12/552 governing conflicts of interest; 
   

1. •has been preceded by an assessment of the relevant person and accompanied by a reassessment of the board as a whole, in accordance with Guidelines EBA/GL/2012/06.
   

Every negative information about the relevant person in the institution’s possession, should be disclosed stating, where appropriate, the reasons why it has considered these elements as not significant for the contemplated appointment.