31. Without prejudice to the responsibilities assigned under the applicable national company law …

Without prejudice to the responsibilities assigned under the applicable national company law, the management body in its supervisory function should:

• a. oversee and monitor management decision-making and actions and provide effective oversight of the management body in its management function, including monitoring and scrutinising its individual and collective performance and the setting and implementation of the issuer of ARTs’ strategy and objectives;
• b. constructively challenge and critically review proposals and information provided by members of the management body in its management function, as well as its decisions;
• c. ensure and periodically assess the effectiveness of the issuers of ARTs ’ governance framework and take appropriate steps to address any identified deficiencies;
• d. oversee and monitor that the issuer ’s strategic objectives, organisational structure and risk strategy, its risk appetite and risk management framework, as well as other policies (e.g. investment policy on the reserve of assets) are implemented consistently;
• e. monitor that the risk culture of the issuer of ARTs is implemented consistently;
• f. oversee the implementation, the update and the effective application of policies and procedures to identify, prevent, manage and disclose conflicts of interest, in accordance with Article 32 of Regulation (EU) 2023/1114;¹¹
• g. oversee the integrity of financial information and reporting, and the internal control framework, including an effective and sound risk management framework;
• h. ensure that the heads of internal control functions are able to act independently and, regardless of the responsibility to report to other internal bodies, business lines or units, can raise concerns and warn the management body in its supervisory function directly, where necessary, when adverse risk developments affect or may affect the issuer of ARTs; and
• i. set and monitor the implementation of the internal audit plan.

¹¹ See the RTS on conflict of interests under Article 32(5) of Regulation (EU) 2023/1114.

1. Overview

1.1 References

• Article 32 Identification, prevention, management and disclosure of conflicts of interest

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

• EBA - Published by the European Banking Authority at https://www.eba.europa.eu/