4:68 The committees to be set up pursuant to Article 24 of the Brokerage Supervision Act must be comprised exclusively of non-executive directors serving on the statutory governing body and at least one independent member within the meaning of Article 3(64) of the Brokerage Supervision Act.

4:69 Pursuant to Article 24 §3 of the Brokerage Supervision Act, stockbroking firms must ensure that the same member does not serve on more than three committees.

4:70 In accordance with paragraph 53 of EBA/GL/2021/14, the following measures contribute to the proper functioning of the committees and are therefore – without prejudice to stricter requirements provided for by the CAC^[1] - recommended good practices:

• the chair of the risk committee should not also chair the statutory governing body or any other committee; and
• the chair of the risk committee should be independent within the meaning of Article 3(64) of the Brokerage Supervision Act.

4:71 Where specialised committees must be set up in accordance with Article 24 of the Brokerage Supervision Act, their members should have the specific expertise described in Articles 26 to 29 of this act.

4:72 In the performance of its prudential supervisory tasks, the NBB should assess the knowledge and experience of prospective members of the aforementioned committees and examine whether the composition and procedures of these committees offer sufficient guarantees to enable them to carry out their duties properly.^[2]

^{[1] Article 30 of the Brokerage Supervision Act provides that Articles 24, 26 and 28 are without prejudice to the provisions of the CAC relating to the audit committee and the remuneration committee in listed companies within the meaning of Article 1:11 CAC.}

^{[2] In this context, it should be ensured that the committees are not too small so as to avoid deadlock when a member is absent.}