The updated EBA guidelines are due for implementation by 31st of December. They are based on earlier set of guidelines on internal governance with additional elements that aim to foster a sound risk culture implemented by the management body, to strengthen the oversight of the institution’s activities and to strengthen the risk management frameworks of institutions, e.g. by including the new requirements introduced in the CRD V and CRR II.
The EBA guidelines aim to correct institutions’ weak or superficial internal governance practices. Further there has been a greater focus on conduct-related shortcomings, including compliance with the framework to prevent money laundering and terrorist financing and activities in offshore financial centers.
Among the updates to the guidelines there are clarifications on how to manage internal transactions and conflicts of interest, as well as guidance on equal opportunities for staff and anti-discriminatory practices
How can KPMG assist your organization?
KPMG has financial services specialists that create value to customers by providing insights using leading practices and proven methods to guide you into the new era of internal governance. Further, KPMG has extensive experience and knowledge within financial governance and internal control. Therefore, we can assist your organization with performing a gap analysis / maturity assessment against the requirements of EBA/GL/2021/05 guidelines on the internal governance, including other relevant regulations such as GL 12 on management assessments.
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