19.2 Independence of internal control functions

In order for the internal control functions to be regarded as independent, the following conditions should be met:

• a. their staff do not perform any operational tasks that fall within the scope of the activities the internal control functions are intended to monitor and control;
• b. they are organisationally separate from the activities they are assigned to monitor and control;
• c. notwithstanding the overall responsibility of members of the management body for the institution, the head of an internal control function should not be subordinate to a person who has responsibility for managing the activities the internal control function monitors and controls; and
• d. the remuneration of the internal control functions staff should not be linked to the performance of the activities the internal control function monitors and controls, and not otherwise likely to compromise their objectivity⁴⁵ .

⁴⁵ See also the EBA guidelines on sound remuneration policies, available at https://www.eba.europa.eu/regulation-and-policy/remuneration/guidelines-on-sound-remuneration-policies.