9 Corporate values and code of conduct

The management body should develop, adopt, adhere to and promote high ethical and professional standards, taking into account the specific needs and characteristics of the investment firms, and should ensure the implementation of such standards (through a code of conduct or similar instrument). It should also oversee adherence to these standards by staff. Where applicable, the management body may adopt and implement the investment firm ’s group-wide standards or common standards released by associations or other relevant organisations.

Investment firms should ensure that there is no discrimination towards staff based on gender, race, colour, ethnic or social origin, genetic features, languages, religion or belief, political or any other opinion, membership of a national minority, property, birth, disability, age or sexual orientation.

Investment firms ’ policies should be gender-neutral. This includes, but is not limited to, remuneration, recruitment policies, career development and succession plans, access to training and the ability to apply for internal vacancies. Institutions should ensure equal opportunities²⁶ for all staff irrespective of their gender, including with regard to career perspectives, and aim to improve representation of the underrepresented gender in positions within the management body as well as in the group of staff that have managerial responsibilities as defined in the Commission’s Delegated Regulation (regulatory technical standards (RTS) on identified staff). Investment firms should monitor the trend in the gender pay gap. Where investment firms have 50 or more staff²⁷ , the monitoring should be separately for identified staff (excluding members of the management body), members of the management body in its management function, members of the management body in the supervisory function and other staff. Institutions should have policies that facilitate the reintegration of staff after maternity, paternity or parental leave.²⁸

²⁶ See also Directive 2006/54/EC of the European Parliament and of the Council of 5 July 2006 on the implementation of the principle of equal opportunities and equal treatment of men and women in matters of employment and occupation

²⁷ See also EBA Guidelines on sound remuneration policies under Directive (EU) 2019/2034

²⁸ See also EBA Guidelines on sound remuneration policies under Directive (EU) 2019/2034

The standards implemented should aim to enhance the institution’s robust governance arrangements and reduceing the risk to which the investment firm is exposed, in particular operational and reputational risks, which can have a considerable adverse impact on an investment firm ’s profitability and sustainability through fines, litigation costs , restrictions imposed by competent authorities, other financial and criminal penalties, and the loss of brand value and consumer confidence.

The management body should have clear and documented policies for how these standards should be met. These policies should:

• a. remind staff that all the investment firm ’ s activities should be conducted in compliance with the applicable law and with the investment firm ’s corporate values ;
• b. promote risk awareness through a strong risk culture in line with Section 9 of the guidelines , conveying the management body’s expectation that activities will not go beyond the defined risk appetite and limits defined by the investment firm and the respective responsibilities of staff;
• c. set out principles on and provide examples of acceptable and unacceptable behaviours linked in particular to financial misreporting and misconduct, economic and financial crime including but not limited to fraud, money laundering and terrorist financing (ML/TF), anti-trust practices, financial sanctions, bribery and corruption, market manipulation, mis-selling and other violations of consumer protection laws, tax offences, whether committed directly or indirectly, including through unlawful or banned dividend arbitrage schemes;
• d. clarify that in addition to complying with legal and regulatory requirements and internal policies, staff are expected to conduct themselves with honesty and integrity and perform their duties with due skill, care and diligence; and
• e. ensure that staff are aware of the potential internal and external disciplinary actions, legal actions and sanctions that may follow misconduct and unacceptable behaviours.

Investment firms should monitor compliance with such standards and ensure staff awareness, e.g. by providing training. Investment firms should define the function responsible for monitoring compliance with and evaluating breaches of the code of conduct or similar instrument and a process for dealing with issues of non-compliance. The results should periodically be reported to the management body.