4:134 Compliance with legislation, corporate values and the codes of conduct applicable to stockbroking firms as well as the effectiveness of internal controls are enhanced where there are internal channels for staff to raise legitimate concerns, in good faith, regarding material breaches of such laws and regulations, corporate values and codes or regarding unethical or illegal behaviour concerning matters falling under the firm’s authority and control. In this context, firms should put in place and maintain appropriate internal reporting policies and procedures for staff to report breaches or potential breaches of statutory, regulatory or internal requirements, including in particular those imposed by the Brokerage Supervision Act and Regulation (No) 575/2013, or of internal governance arrangements, through a specific, independent and autonomous channel.

4:135 For more information, please see paragraphs 120 to 126 of EBA/GL/2021/14 and the Act of 28 November 2022 transposing Directive (EU) 2019/1937 of the European Parliament and of the Council of 23 October 2019 on the protection of persons who report breaches of Union law.