A. Corporate Structure and Organisation

4. Organisational framework

1. The management body of an institution shall ensure a suitable and transparent corporate structure for that institution. The structure shall promote and demonstrate the effective and prudent management of an institution both on a solo basis and at group level. The reporting lines and the allocation of responsibilities and authority within an institution shall be clear, well-defined, coherent and enforced.

2. The management body should ensure that the structure of an institution and, where applicable, the structures within a group are clear and transparent, both to the institution's own staff and to its supervisors.

3. The management body should assess how the various elements of the corporate structure complement and interact with each other. The structure should not impede the ability of the management body to oversee and manage effectively the risks the institution or the group faces.