Article 16(2) of the EBA and ESMA Regulations provides that the EBA and ESMA should carry out an analysis of 'the potential related costs and benefits' of any Guidelines they develops. This analysis should provide an overview of the findings regarding the problem to be dealt with, the solutions proposed and the potential impact of these options.

A. Problem identification

Directive (EU) 2019/878 of 20 May 2019 is amending Directive 2013/36/EU as regards exempted entities, financial holding companies, mixed financial holding companies, remuneration, supervisory measures and powers and capital conservation measures. The new Directive is to be implemented by Member States by 28 December 2020. EBA and ESMA have issued Joint Guidelines on the Assessment of the suitability of members of the management body and key function holders in 2017. The Joint Guidelines have been amended to reflect the introduced changes.

B. Policy objectives