Cap. 371 Art. 17BInternal governance and recovery and resolution plans.

(1) Every credit institution shall put in place robust governance arrangements which include a clear organisational structure with well defined, transparent and consistent lines of responsibility, effective processes to identify, manage, monitor and report the risks it is or might be exposed to, adequate internal control mechanisms including sound administrative and accounting procedures, network and information systems that are established and managed in accordance with the DORA Regulation, and remuneration policies and practices that are consistent with and promote sound and effective risk management:

Provided that such remuneration policies and practices shall be gender neutral.

(2) The arrangements, processes and mechanisms referred to in sub-article (1), shall be comprehensive and proportionate to the nature, scale and complexity of the risks inherent in the business model and the credit institution’s activities. Credit institutions shall take into account the technical criteria laid down in a Banking Rule.

(3) Every credit institution shall also ensure that its internal control mechanisms and administrative and accounting procedures permit the checking of compliance with the rules adopted in accordance with the provisions of this Act and any regulations made and, or Banking Rules and, or Conduct of Business Rules issued thereunder, with any binding legal instruments issued under the CRD, and with the CRR at all times.

(4) Deleted by Act XXVI.2019.8.

(5) A credit institution shall cooperate closely with the Resolution Committee established under the Malta Financial Services Authority Act, and with any relevant European Resolution Authorities or Third-Country Resolution Authorities and shall provide them with all information necessary for the preparation and drafting of a viable resolution plan setting out options for the orderly resolution of the credit institution in the case of failure, in accordance with the principle of proportionality.