4.1.3. Senior management (or, where applicable, the management committee)

Statutory and regulatory framework

  1. Brokerage Supervision Act: Articles 21, 22, 59, 60 and 61 §3
  2. NBB circulars:
    • Communication NBB_2022_34 of 22 December 2022 updating the NBB’s Fit & Proper Manual
    • Circular NBB_2021_27 transposing EBA/GL/2021/06 on the assessment of suitability of members of the management body and key function holders
    • Communication NBB_2021_04 of 20 January 2021 on the HIVE project and digitalisation of the fit and proper process
    • Circular NBB_2011_09 of 20 December 2011 on the assessment report by senior management on the   internal control system, the assessment report by senior management on the internal controls as regards investment services and activities, and the statement by senior management on periodic prudential reporting
  3. International reference documents:
    • EBA/GL/2021/14 on internal governance => paragraphs 32 to 35

 

4:40 The management function is entrusted to senior management.

4:41 In accordance with Article 21 of the Brokerage Supervision Act, the NBB may require that a management committee be set up where the firm’s size, internal organisation or activities so justify.[1] A management committee should enhance the efficiency of dual supervision and collective decision-making on the conduct of the firm’s activity.  The firm may also set up a management committee on a voluntary basis provided it informs the NBB of its intention to do so and the NBB does not object within 30 working days.  The establishment of a management committee should be provided for in the firm’s articles of association.

 

[1] The option for the NBB to require that a management committee be set up also applies to small stockbroking firms.