On 15 June 2021, the European Central Bank (ECB) issued a consultation on the draft of a revised and more comprehensive version of its guide to fit and proper assessments and a new fit and proper questionnaire.

Among other things the proposed changes introduce ECB supervisory expectations on climate-related and environmental risks and explain the ECB’s approach to diversity. The ECB also proposes to explain in more detail in the guide how board members will be reassessed if new material facts emerge after their appointment. It also encourages banks that are subject under national law to an ex post assessment regime to file their fit and proper applications before making appointments.

The deadline for comments on the consultation is 2 August 2021.

A public hearing via webex will take place on 15 July 2021.

When finalised the documents will replace the existing guide (from May 2018) and questionnaire (from 2016).