161. To ensure that the internal control functions comply with independence requirements …

To ensure that the internal control functions comply with independence requirements⁵⁹ , competent authorities should verify that, based on the application documents, it is envisaged that:

• (a) their staff do not perform any operational tasks falling 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;
• (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 objectivity.

⁵⁹ See paragraph 175 of the EBA Guidelines on internal governance .

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

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