4.4.3. Independent control functions
Statutory and regulatory framework
- Brokerage Supervision Act: Articles 31 to 36
- 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)
- 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
- 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.