40. Issuers of ARTs and CASPs, should perform the assessment or a re-assessment of the suitability …

Issuers of ARTs and CASPs, should perform the assessment or a re-assessment of the suitability of the management body, and its members:

• a. when applying for authorisation before commencing the activities that require author-isation;
• b. when material changes to the composition of the management body occur, including:
• i. when appointing new members of the management body, including in the context of a direct or indirect acquisition or increase of a qualifying holding in the issuer of ARTs or the CASP. This assessment should be limited to newly appointed members and the collective suitability of the management body;
• ii. when re-appointing members of the management body, if the requirements of the position have changed or if the member is appointed to a different po-sition within the management body. This assessment should be limited to the members whose position has changed and to the analysis of the relevant as-pects, taking into account any additional requirements for the position and the collective suitability of the management body;
• c. where material changes to the business model and activities, underlying legal provi-sions or technologies used occurred;
• d. on an ongoing basis, in the light of any relevant new fact or situation. In particular, a re-assessment should be performed in the following cases:
• i. when there are concerns regarding the individual or collective suitability of the members of the management body;
• ii. in the event of a possible material impact on the reputation of a member of the management body, or the issuer of ARTs or CASPs, including cases where members do not comply with the firm’s conflict of interest policy;
• e. where there are reasonable grounds to suspect that money laundering or terrorist fi-nancing has been or is being committed or attempted in connection with that issuer of ARTs or CASP, or where it has been found to be in breach of its AML/CFT obligations in the home or host Member State or in a third country in any event that can otherwise materially affect the suitability of the member of the management body.

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

• EBA - Published by the European Banking Authority at https://www.eba.europa.eu/