4:52 In accordance with, in particular, Article 59 of the Brokerage Supervision Act, senior managers or, where applicable, members of the management committee are entrusted with the following tasks:

1. managing the firm’s business and developing its management structure;
2. supervising line management, monitoring compliance with assigned powers and responsibilities, and overseeing financial reporting;
3. making suggestions to and advising the statutory governing body with regard to determination of the firm’s general policy and strategy and providing all relevant information and data to enable the statutory governing body to take informed decisions;
4. organising, steering and assessing the internal control mechanisms and procedures, in particular as regards the independent control functions, without prejudice to supervision carried out by the statutory governing body;
5. ensuring that the remuneration policy established by the statutory governing body is correctly implemented;
6. implementing the necessary measures to ensure proper risk management, including in particular providing the statutory governing body with appropriate information on all significant risks, management policies and the management of significant risks;
7. organising an internal control system that provides reasonable assurance on the reliability of internal reporting and financial disclosure, in order to ensure that the annual accounts are in compliance with the applicable accounting rules and regulations;
8. reporting to the statutory governing body on the firm’s financial position, the effectiveness of the internal control system and all aspects necessary to fulfil its tasks correctly.

4:53 With regard to the last point, Article 59 of the Brokerage Supervision Act provides that the management committee should report at least every two years (depending on the size of the firm) to the statutory governing body, the certified auditor and the NBB on its assessment of the effectiveness of the organisational requirements imposed by the Brokerage Supervision Act and on any measures taken to remedy the identified shortcomings.^[1]

4:54 Furthermore, senior management should confirm to the NBB every six months that the periodic reports comply with the accounts and inventories (“statement on periodic prudential reporting”). A copy of this statement must be provided to the statutory governing body and the certified auditor.

4:55 For more information on the tasks of senior management (or, where applicable, the management committee), please see paragraphs 32 to 35 of EBA/GL/2021/14.

^{[1] As specified in Circular NBB_2011_09, the management committee must submit two reports in this respect: an assessment report on the internal control system and an assessment report on the internal controls as regards investment services and activities.}