On 28 April, ESBG submitted its response to the European Supervisory Authorities’ (ESAs’) consultation on joint draft Guidelines concerning the system established by the ESAs for the exchange of information relevant to the assessment of the fitness and propriety of holders of qualifying holdings, directors and key function holders of financial institutions and financial market participants by competent authorities.

In its response, ESBG expressed its concern about proposed guidelines that could interfere with the distribution of responsibilities between ESAs and the national competent authorities in some Member States. ESBG members argue that the envisaged obligation to query a centrally organised database violates the competence of national competent authority and that the database is not necessary for efficient supervision. They also raise concerns about using data from the database by the ESAs and suggest that the purpose for accessing and evaluating data should be specified in the guidelines.

ESBG proposes essential modifications that should be made if the ESA’s guidelines on information exchange are introduced.

ESBG proposes including a general obligation that queries of the database must have a legitimate reason and be logged, informing the data subject when a query is made and establishing minimum standards for data security.

ESBG also suggests specific clarifications and attention to statutory deadlines, as well as ensuring that the exchange of information does not alter, suspend or elongate the deadlines applicable to the assessment at stake.

Finally, ESBG also highlights the importance of data protection when competent authorities exchange information on members of the management body.

Read the full position