4:166 Pursuant to Article 32 of the Brokerage Supervision Act, the compliance function is responsible for monitoring compliance with the statutory and regulatory provisions on integrity and conduct applicable to investment activities, investment services and/or ancillary services. The objective of the compliance function is thus to prevent the firm from suffering the consequences - in particular reputational damage, a loss of credibility or legal risks capable of causing serious financial harm - of non-compliance with the statutory and regulatory provisions or with the ethical rules applicable to asset managers (compliance risk). For more information on the compliance function, please see Circular NBB_2012_14 and paragraphs 183 to 190 of EBA/GL/2021/14.

4:167 The specific requirements regarding the expertise expected of the head of the compliance function are set out in the NBB’s Regulation of 6 February 2018, while the conditions for authorisation by the FSMA are set out in the FSMA’s Regulation of 27 October 2011. A new head of the compliance function is appointed in consultation between the NBB and the FSMA (if applicable, with a joint interview). This is the case even if a separate application must be sent to each authority. According to these regulations, the head of the compliance function should also, as from their appointment, undergo at least 40 hours of training every three years. Firms should also ensure that the other persons responsible for the compliance function participate in such a programme, with a minimum duration of 20 hours, every three years. The continuing training requirements are further explained in the explanatory note to the aforementioned regulation and Communication FSMA_2018_05 of 8 May 2018 on continuing training for compliance officers.

4:168 The statutory governing body should produce an annual report assessing the proper functioning of the compliance function.