Board responsibilities under the CSSF Circular 12/552, as amended by the CSSF Circular 20/759 (for Credit Institutions)
The long-awaited update of CSSF Circular 12/552 is finally here: welcome to CSSF Circular 20/759.
The CSSF Circular 20/759 updating the CSSF Circular 12/552 on central administration, internal governance and risk management (as amended) has been published by the CSSF on 07 December 2020. It mainly transposes the EBA Guidelines on Internal Governance (EBA/GL/2017/11) and the Joint EBA-ESMA Guidelines on the assessment of the suitability of members the management body and key function holders (EBA/GL/2017/12).
This Circular is enter into force on 1st January 2021. Banks are therefore expected to be compliant with these obligations on that date.
The amended Circular tends to enlarge the roles and responsibilities of the Management Body in order to enhance the internal governance framework of Credit Institutions.
By the end of this training, the participants will be able to:
- Understand the roles and responsibilities of Board members.
- Understand the main aspects of the suitability assessment of the Board members (both collectively and individually).
- Identify the CSSF expectations regarding the sound and prudent management of the institution.
- Understand the interactions of the Board with other stakeholders within the internal governance framework (Management, internal control functions and regulators, etc.).
- The main roles and responsibilities of the Board of Directors within the organisation.
- Obligations of Board members resulting from the CSSF Circular 12/552 as amended in terms of organisation, formalisation, independence, suitability assessment etc..
- A refresh on 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..
- Presentation of the main changes introduced by the EBA Guidelines on Internal Governance.