Europe: EBA internal governance guidelines published

The European Banking Authority (EBA) has published its Guidelines on Internal Governance: see here (pdf). The EBA expects competent authorities (e.g., the Financial Services Authority in the UK) to require institutions to comply with the provisions in the Guidelines, which are organised into six sections: corporate structure and organisation; management body; risk management; internal control; information systems and business continuity; and transparency.

In accordance with Article 16(3) of Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), competent authorities must tell the EBA whether they comply with the Guidelines or intend to comply. Where a competent authority will not comply it must inform the EBA and provide reasons for its non-compliance.