2 Management function of the management body

The management body in its management function should engage actively in the business of an institution and should take decisions on a sound and well-informed basis.

The management body in its management function should be responsible for the implementation of the strategies set by the management body and discuss regularly the implementation and appropriateness of those strategies with the management body in its supervisory function. The operational implementation may be performed by the institution ’ s management.

The management body in its management function should constructively challenge and critically review propositions, explanations and information received when exercising its judgement and taking decisions. The management body in its management function should comprehensively report, and inform regularly and where necessary without undue delay the management body in its supervisory function of the relevant elements for the assessment of a situation, the risks and developments affecting or that may affect the institution, e.g. material decisions on business activities and risks taken, the evaluation of the institution ’s economic and business environment, liquidity and sound capital base, and assessment of its material risk exposures.

Without prejudice to the national transposition of Directive 2015/849/EU, the management body should identify one of its members in line with the requirements under Article 46(4) of Directive 2015/849/EU Anti-Money Laundering Directive (AMLD) who is responsible for the implementation of the laws, regulations and administrative provisions necessary to comply with this directive, including the corresponding AML/CFT policies and procedures in the institution and at the level of the management body¹⁷ .

¹⁷ The management body as a collegial body remains responsible as a whole.