(1) An investment firm shall have robust governance arrangements, including all of the following:

(a) a clear organisational structure with well-defined, transparent and consistent lines of responsibility;

(b) effective processes to identify, manage, monitor and report the risks that investment firms are or might be exposed to, or the risks that they pose or might pose to others;

(c) adequate internal control mechanisms, including sound administration and accounting procedures;

(d) remuneration policies and practices that are consistent with and promote sound and effective risk management.

(2) The remuneration policies and practices referred to in paragraph (1)(d) shall be gender neutral.

(3) When establishing the arrangements referred to in paragraph (1), an investment firm shall take into account the requirements of Regulations 25 to 30.

(4) The arrangements referred to in paragraph (1) shall be appropriate and proportionate to the nature, scale and complexity of the risks inherent in the business model and the activities of the investment firm.