4.4.3.4. Internal audit function

Statutory and regulatory framework

  1. Brokerage Supervision Act: Article 35
  2. NBB regulations:
    • Regulation of 19 May 2015 on the internal control system and the internal audit function
  3. NBB circulars:
    • Circular NBB_2015_21 of 13 July 2015 on the internal control function and the internal audit function
  4. International reference documents:
    • EBA/GL/2021/14 on internal governance => paragraphs 191 to 201

4:173 An effective internal audit function provides, in an independent manner, reasonable assurance to the statutory governing body and senior management or, where applicable, the management committee as to the quality and effectiveness of the firm’s internal control, risk management, and governance systems and processes.

4:174 The internal audit function reports directly to the statutory governing body, where applicable through the risk committee or the audit committee, and keeps senior management or, where applicable, the management committee informed of its findings. For more information on the NBB’s prudential expectations regarding the internal audit function, please see the Regulation of 19 May 2015 and Circular NBB_2015_21 as well as paragraphs 191 to 201 of EBA/GL/2021/14.