1. Member States shall ensure that the management body defines, oversees and is accountable for the implementation of the governance arrangements that ensure effective and prudent management of an institution, including the segregation of duties in the organisation and the prevention of conflicts of interest.
Those arrangements shall comply with the following principles:
(a) the management body must have the overall responsibility for the institution and approve and oversee the implementation of the institution's strategic objectives, risk strategy and internal governance;
(b) the management body must ensure the integrity of the accounting and financial reporting systems, including financial and operational controls and compliance with the law and relevant standards;
(c) the management body must oversee the process of disclosure and communications;
(d) the management body must be responsible for providing effective oversight of senior management;
(e) the chairman of the management bo
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