4.1 CostBenefit Analysis / Impact Assessment

Introduction

As per Article 16(2) of the EBA Regulation (Regulation (EU) No 1093/2010 of the European Parliament and of the Council, EBA has conducted an Impact Assessment (IA) which analyses the "potential related costs and benefits" (proportionate in relation to the scope, nature and impact of the guidelines or recommendations).

Article 11(1) of Directive 2006/48/EC provides that a credit institution shall only be authorised when there are at least two suitable persons who effectively direct the business and asks the EBA to develop guidelines for the assessment of the suitability of the persons who effectively direct the business of a credit institution.

According to Article 22 of Directive 2006/48/EC credit institutions shall have robust governance arrangements in place. This includes that the persons who manage an institution on a daily basis or supervise its activities are suitable to fulfil their duties.

Scope and nature of the problem