CYPRUS Law and Practice Contributed by: Marcos Georgiades, Dominique Pelides and Panayiota Elia, Georgiades & Pelides
• can dedicate enough time to the performance of his or her duties and whether the limita- tions on the number of positions that can be held by such person on other boards are complied with. The bank must provide the CBC with the results of the assessment and, where the bank is a significant supervised entity, the CBC provides the results to the ECB. The relevant candidate is only appointed with the consent of the CBC or, in the case of significant supervised entities, with the consent of the ECB. No person may be appointed to the position of member of the management body or key function holder of a bank established in Cyprus if such person has been declared bankrupt, has been convicted of an offence relating to fraud or dishonesty in any jurisdiction, or has been convicted of an offence under the Banking Law. Roles of Management Body and Senior Management Management body According to the Governance Directives, the management body has the primary responsibility for internal governance. It must define, supervise and be accountable for the implementation of governance arrangements that ensure effective and prudent management of the bank, includ - ing the segregation of duties and the prevention of conflicts of interest. Such arrangements must comply with the following principles: • the management body has the overall responsibility of the bank and approves and oversees the implementation of its strategic objectives, risk strategy and internal govern - ance; • the management body ensures the integrity of the accounting and financial reporting systems, including financial and operational
controls and compliance with the law and relevant standards; and • the management body oversees the process of disclosure and communications, and is responsible for supervising senior manage - ment. Among other things, banks are also required to: • have appropriate evaluation procedures for the performance of the management body as a whole, each committee and each individual member of the management body, which must be carried out at least annually; • carry out a review and evaluation of the composition, efficiency and effectiveness of the management body and its committees, through external consultants, at least every three years; and • have appropriate policies and procedures for selecting, developing and, where neces - sary, replacing the chief executive officer or other senior managers, and have appropriate succession plans in place, having due regard to the importance and critical nature of their duties. The management body of a bank is responsi - ble for supervising senior management. It must establish appropriate policies, practices and procedures to ensure that senior management carries out its duties and responsibilities in accordance with the relevant provisions of the Governance Directives. Senior management The chief executive and other senior managers are responsible for directing and overseeing the effective management of the bank within the authority delegated to them by the management body, and in compliance with the applicable laws and regulations.
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