9.1 Interaction between independence of mind and the principle of being independent

When assessing the independence of members, institutions should differentiate between the notion of ‘independence of mind’ , applicable to all members of an institution’s management body, and the principle of ‘being independent’ , required for certain members of a relevant institution’s management body in its supervisory function. The criteria for the assessment of ‘independence of mind’ are provided in section 9. 2 and for the assessment of ‘being independent’ in section 9.3.

Acting with ‘ independence of mind ’ is a pattern of behaviour, shown in particular during discussions and decision-making within the management body, and is required for each member of the management body regardless of whether or not the member is considered as ‘being independent ’ in accordance with section 9.3. All members of the management body should engage actively in their duties and should be able to make their own sound, objective and independent decisions and judgments when performing their functions and responsibilities.

‘ B eing independent’ mean s that a member of the management body in its supervisory function does not have any present or recent past relationships or links of any nature with the relevant institution or its management that could influence the member ’ s objective and balanced judgement and reduce the member’s ability to take decisions independently. The fact that a member is considered as ‘ being independent ’ does not mean that the member of the management body should automatically be deemed to be ‘ independent of mind ’ as the member might lack the required behavioural skills.