FRANCE Law and Practice Contributed by: Damien Luqué, Martin Jarrige de la Sizeranne and Sacha Tartarin, Lacourte Raquin Tatar
4.2 Registration and Oversight of Senior Management Fitness and Propriety Requirements Pursuant to French law, members of the man - agement body (including conducting officers and members of the supervisory bodies) and staff holding key functions within credit institu - tions must comply with fitness and propriety requirements. In order to ensure sound governance arrange - ments within the institution, those individuals must demonstrate integrity, knowledge, skills and relevant experience in relation to their func - tions. According to French law, key function holders are individuals responsible for control functions, including risk management, compliance and internal audit. Suitability Assessment Requirements The appointment or renewal of any member of a credit institution’s management body (ie, con - ducting officers and members of the supervi - sory body) must be notified to the supervisory authorities within 15 days from the date of their appointment. The notification forms must be filled out on the ECB online portal for institutions under the direct supervision of the ECB and on the ACPR online portal for other institutions. The Authorities have two months to review the forms and approve or reject the appointment. Regarding the appointment or renewal of con - ducting officers, both the ECB and ACPR assessments are based on the following criteria: • fitness and propriety; • knowledge; • experience; and • availability.
Regarding the members of the management body in its supervisory functions: • independence from the credit institution’s management functions; • fitness, propriety, knowledge, experience; and • availability. To perform their assessment of newly appointed or renewed individuals, supervisory authorities require detailed information such as: • diplomas and certificates; • practical and professional experience gained in previous positions; • availability in days per year; and • previous criminal, civil or administrative pro - ceedings. French law implementing the CRD and CRR imposes specific rules regarding the remu - neration of identified staff for credit institutions licensed in France. A remuneration policy must be applied to those categories of staff whose professional activities have a significant impact on the risk profile of the credit institution or group. These individuals are generally referred to as “material risk takers” (MRTs). According to French law, MRTs are: • all members of the board of directors, super - visory board or any other body exercising equivalent functions, as well as the conduct - ing officers; 4.3 Remuneration Requirements Staff Subject to the Remuneration Requirements • the members of staff responsible for the con - trol functions or the members of the material
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