Fit & Proper form (L form, LSI credit institutions)
Assessment of the suitability of members of the management body and key function holders
This form is to be used by the following entities:
• credit institutions
• holding companies of credit institutions
• central bodies of amalgamations of deposit banks
• holding companies of financial and insurance conglomerates primarily engaged in financial activities
• foreign credit institutions authorised in a non-EEA country and having a branch in Finland.
The form is to be used in notifying information on the members of a credit institution's management body and key function holders, in connection with an application for authorisation of an LSI credit institution (Ministry of Finance Decree 264/2021) and a notification on the acquisition of a significant holding (Ministry of Finance Decree 700/2014).
In accordance with chapter 7, section 4(5) of the Credit Institutions Act, an assessment must be conducted of the following persons responsible for the management of the supervised entity:
• member of the board of directors (or supervisory board, where duties of the board of directors have been transferred to the supervisory board) and deputy member
• managing director and deputy managing director and others serving directly under the managing director in a senior management capacity within a supervised entity or effectively managing the operation of the entity
• manager and deputy manager of the foreign branch of a Finnish credit institution
• manager and a deputy manager of the Finnish branch of a foreign credit institution domiciled outside the EEA, and
in accordance with Guideline EBA/GL/2021/06 of the European Banking Authority, persons who have significant influence over the direction of the institution, but who are neither members of the management body nor the CEO. They include the heads of internal control functions and the CFO, where they are not members of the management body, and, where identified on a risk-based approach by relevant institutions, other key function holders. Other key function holders might include heads of significant business lines, European Economic Area/European Free Trade Association branches, third country subsidiaries and other internal functions.