Procedure for the assessment of the suitability of officials

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The requirements of the Credit Institution Law, the Financial and Capital Market Commission’s (FCMC) regulations on the assessment of the suitability of members of the management board and of the supervisory board and key function holders and the FCMC’s regulations on establishing the internal control system determine the obligation for credit institutions to implement strict management measures, including the fit and proper requirements for the persons responsible for the management of credit institutions. The FCMC shall assess suitability of the officials of the bank specified in Section 24 paragraph one and Section 26 paragraph one of the Credit Institution Law to mentioned law requirements. Compliance with following criteria is assessed during the process: 1) reputation; 2) knowledge, skills and experience; 3) ability to act in accordance with the corporate values of credit institution and standards of professional conduct and ethics, including independence of mind; 4) ability to devote sufficient time to the performance of their duties; 5) collective suitability.

The documents to be submitted for the assessment of suitability of officials of credit institutions determined by the Article 3 of the FCMC’s Regulations No 201 Procedure for the Submission of Information and Documents for the Assessment of Suitability of Officials of Credit Institutions of 27.10.2020.

These regulations and law are available on the FCMC website: https://www.fktk.lv/en/law/credit-institutions/.

The assessment of officials of the significant supervised credit institutions shall be carried out by the European Central Bank (ECB) in cooperation with the FCMC. The monitoring policy, processes and practices applied by the ECB when carrying out the suitability assessment are determined in the ECB Guide to fit and proper assessment, available on the FCMC website: https://www.fktk.lv/en/law/credit-institutions/eu-regulations-en/ecb-guidelines/.

From January 2021, the significant supervised credit institutions shall submit the documents specified by the FCMC electronically, using the Information Management System Portal of ECB (IMAS portal): https://www.fktk.lv/en/licensing/credit-institutions/imas-portal/.

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