Banks' internal governance under CSSF Circular 12/552 as amended (for banks)
Following the recent changes introduced by the CSSF Circular 20/759, Banks must now consider the new provisions of CSSF Circular 22/807 transposing the EBA Guidelines on internal governance (EBA/GL/2021/05) and on the assessment of the suitability of members of the management body and key function holders (EBA/GL/2021/06), and the internal adjustments to be made.
The CSSF Circular 22/807 updating the CSSF Circular 12/552 on central administration, internal governance and risk management has been published by the CSSF on 22 April 2022. This Circular reinforces the internal governance requirements for Banks at all levels of the organization: Board of Directors (including specialized committees), authorised management, internal control functions, etc. In particular, it strengthens the diversity rules and suitability requirements for Board members and authorised managers, and introduces new rules regarding transactions with related parties and loans to the members of the management body.
This Circular entered into force on 30 June 2021. Banks are therefore expected to be compliant with these obligations on this date.
By the end of this training, the participants will be able to:
- Understand the key internal governance requirements for Banks (incl. the roles and responsibilities of the management body, the 3 lines of defence model, etc.).
- Understand the respective roles and responsibilities of Board members and authorised managers;
- Understand the main aspects of the suitability assessment of the Board members, authorised managers and key function holders (both collectively and individually);
- Identify the CSSF expectations regarding the sound and prudent management of the institution;
- Understand the interactions of the Board and authorised management with other stakeholders within the internal governance framework (internal control functions, external auditor, regulators, etc.).
- Understand the internal reporting mechanisms.
- The main roles and responsibilities of the Board of Directors and authorised management within the organisation;
- Obligations of Board members and authorised managers resulting from the CSSF Circular 12/552 (as amended) in terms of organisation, oversight, formalisation, independence, suitability, diversity, etc.;
- A reminder of the specific role of the chairman, the roles of the specialized committees, the interaction with the authorised management, internal controls function and regulatory authorities, etc.;
- Roles & responsibilities of the internal control functions and their interactions with the management body;
- Presentation of the main changes introduced by the EBA Guidelines on Internal Governance (EBA/GL/2021/05).
A qui s'adresse la formation?
For Credit Institutions only:
- Board members;
- Authorised managers;
- Chief Compliance Officers;
- Chief Risk Officers;
- Chief Internal Auditors;
- General secretary.