Board effectiveness is a key challenge for boards, a challenge that goes far beyond judging structural elements such as board composition and the definitions of roles and responsibilities. A key driver lies in board dynamics, where independence (of mind) and professionalism play a crucial role.
The European Central Bank has recently published a guide on the ‘fit and proper’ assessments that it undertakes in respect of board members for the institutions under its direct supervision. The European Banking Authority, in cooperation with ESMA, is also about to issue its updated guidelines which aim at further improving and harmonising the assessment of suitability within the EU financial sector and at ensuring sound governance arrangements in institutions.
The European Banking Federation (EBF) together with the European Confederation of Directors’ Associations (ecoDa) are therefore organizing a joint event on October 25th on Boards’ efficiency and fit & proper rules in financial organizations on the EBF premises in Brussels (Avenue des Arts 56) from 9.00 to 11.45 (followed by a cocktail).
The speakers will question: How judging ‘the fit’ of an individual board member should be done in light of the composition of the global board? What should be the periodicity and the depth of assessments? How should the national supervisors complement the role of boards in assessing the suitability of directors, before any nomination or re-nomination?
The conference will finally question to what extent the ECB and EBA guidelines might be inspirational for a more general reflection on ‘internal governance’ from the perspective of a conglomerate or industrial group and all of its constituent companies and business units.
The conference will include speakers from ECB, EBA, national financial supervisory authorities, board members, a head hunter and a consultant. The final programme will be circulated later on.