4.4.3. Independent control functions

Statutory and regulatory framework

  1. Brokerage Supervision Act: Articles 31 to 36
  2. NBB regulations:
    • Regulation of 19 May 2015 on the internal control system and the internal audit function (approved by the Royal Decree of 5 July 2015)
  3. NBB circulars:
    • Communication NBB_2019_15 on the NBB’s expectations regarding the content of the statutory governing body’s assessment report on the compliance function
    • Circular NBB_2015_21 on the internal control system and the internal audit function
    • Circular NBB_2012_14 on the compliance function
  4. International reference documents:
    • EBA/GL/2021/14 on internal governance => paragraphs 150 to 201

 

4:147 Firms should set up three independent control functions:

- a risk management function;

- a compliance function; and

- an internal audit function.

4:148 These functions are necessary to enable the statutory governing body, in its supervisory capacity, to effectively oversee senior management.