8. 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 issuer of the ARTs, and should ensure the implementation of such standards (through a code of conduct or similar instrument). It should also oversee the adherence to these standards by staff. Where applicable, the management body may adopt and implement the issuer of ARTs group-wide standards or common standards released by associations or other relevant organisations.

Issuers of ARTs 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.

The policies of issuers of significant ARTs should be gender-neutral¹³ . 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. Issuers of ARTs should ensure equal opportunities¹⁴ 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. Issuer of significant ARTs should monitor the trend in the gender pay gap.

¹³ See the RTS on the minimum content of the governance arrangements on the remuneration policy for issuers of significant ARTs in accordance with Article 45(7)(a) of Regulation (EU) 2023/1114;

¹⁴ 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.

The standards implemented should aim to enhance the issuer of ARTs’ robust governance arrangements and reducing the risk to which the firm is exposed, in particular operational and reputational risks, which can have a considerable adverse impact on an issuer of ARTs profitability and sustainability through fines, litigation costs, restrictions imposed by competent authorities, other financial and criminal penalties, and the loss of brand value and investor 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 issuer’s of ARTs activities should be conducted in compliance with the applicable law and with the issuer’s corporate values;
• b. promote risk awareness through a strong risk culture in line with Title IV, Section 7, conveying the management body’s expectation that activities will not go beyond the defined risk appetite and limits defined by the issuer of ARTs 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;
• 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.

Issuers of ARTs should monitor compliance with such standards and ensure staff awareness, e.g., by providing training.