Guidelines on supervisory independence of competent authorities under Directive 2013/36/EU
The European Banking Authority (EBA) published its final Guidelines on Supervisory Independence under the Capital Requirements Directive (CRD). The Guidelines further clarify the arrangements that competent authorities should have in place to prevent and manage conflicts of interest involving both their staff and the members of their governance bodies. These arrangements include declarations of interest, limitations on trading of financial instruments and cooling-oof restrictions.The EBA’s new framework strengthens supervisory independence by standardizing how EU authorities prevent personal or political interests from compromising financial oversight.
Key Requirements
- Stricter Disclosures: Mandatory declarations of interest during hiring, annually, and whenever new conflicts arise.
- Trading Bans: Clear prohibitions on trading specific financial instruments and strict rules for selling existing assets to prevent insider advantages.
- Governance Controls: Standardized procedures for appointing officials and setting fixed term limits to ensure transparency.
- Post-Employment Barriers: Uniform “cooling-off” periods for staff moving to the private sector to prevent “revolving door” influence.
- EU-Wide Alignment: Harmonized criteria to ensure all national authorities across the EU apply these ethics and independence rules consistently
