4:1 The requirement of sound and appropriate structures for organisation of the business to ensure effective and prudent management of the firm is described in Article 17 of the Brokerage Supervision Act. This is an essential statutory requirement inherent in the legal status of stockbroking firms. It must be complied with in all cases; only the scope and magnitude of this obligation vary depending on the nature, scale and complexity of the risks inherent in the firm’s business model and operations (application of the principle of proportionality). The management structure should be continually adapted to the development of the firm’s business.  This requirement is reflected in the Brokerage Supervision Act by means of a non-exhaustive list of various aspects, which are covered in more detail below.