Control Functions


A firm must ensure that employees engaged in control functions:

  1. (1) are independent from the business units they oversee;
  2. (2) have appropriate authority; and
  3. (3) are remunerated:
    1. (a) adequately to attract qualified and experienced employees; and
    2. (b) in accordance with the achievement of the objectives linked to their functions, independent of the performance of the business areas they control.

[Note: Art. 92(2)(e) of the CRD and Standard 2 of the FSB Compensation Standards]

[Note: CRD]


A firm must ensure that the remuneration of the senior officers in risk management and compliance functions is directly overseen by the remuneration committee referred to in 7.4, or, if such a committee has not been established, by the governing body in its supervisory function.

[Note: Art. 92(2)(f) of the CRD]

[Note: CRD]