In accordance with the requirements introduced by Directive 2013/36/EU and Directive 2014/65/EU, the European Securities and Markets Authority (ESMA) and the European Banking Authority (EBA) jointly issue Guidelines on the notions of suitability, as required by Article 91(12) of Directive 2013/36/EU and Article 9(1) of Directive 2014/65/EU [Directive 2014/65/EU enters into application on 3 January 2018], and on the assessment of suitability by institutions and competent authorities.

The directives aim to remedy weaknesses that were identified during the financial crisis regarding the functioning of the management body and its members. The Guidelines aim to further improve and harmonise the assessment of suitability within the EU financial sector, and to ensure sound governance arrangements in institutions.

The Guidelines apply to all institutions, independent of their governance structures (unitary board, dual board or other structures), without advocating or preferring any specific structure as set out in the defined scope of application. The terms 'management body in its management function' and 'management body in its supervisory function' should be interpreted throughout the Guidelines in accordance with the applicable law within each Member State.