C.6. Decision of the competent authority

Competent authorities should take a decision based on the assessment of individual and collective suitability of members of the management body within the maximum period referred to in paragraph 67 or, if the period has been suspended as referred to in paragraph 68, within the maximum period of 6 months.

Where the outcome of the assessment of suitability by the competent authority concludes that it is not sufficiently proven that the assessed person is suitable, including in situations where the provided information is not sufficient to complete the assessment, the competent authority should object to or not approve the appointment of that person, unless the identified shortcomings are remediable and can be overcome by other measures taken by the issuer of ARTs or by the CASP.

Where an issuer of ARTs or a CASP fails to provide sufficient information regarding the suitability of an assessed individual to the competent authority, the latter should inform the firm that the member cannot be a member of the management body because it has not been sufficiently proven that the person is suitable or that it decided negatively.

Where shortcomings regarding the individual or collective knowledge, skills or experience of members of the management body are identified, the competent authority, considering the measures already taken by the issuer of ARTs or the CASP, should take appropriate measures to address the identified shortcomings and set a timeline for the implementation of these measures. Such measures should include as appropriate one or more of the following measures:

• a. requiring the issuer of ARTs or the CASP to organise specific training for the members of the management body individually or collectively;
• b. requiring the issuer of ARTs or the CASP to change the division of tasks amongst the members of the management body;
• c. requiring the issuer of ARTs or the CASP to refuse the proposed member or to replace certain members;
• d. requiring the issuer of ARTs or the CASP to change the composition of the management body to ensure the individual and collective suitability of the management body;
• e. removing the member from the management body of the issuer of ARTs or of the CASP;
• f. where appropriate, imposing administrative penalties or other administrative measures (e.g. setting out specific obligations, recommendations or conditions), in-cluding ultimately withdrawing the authorisation.