Article 26
Internal governance
1.
Member States shall ensure that investment firms 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.
The remuneration policies and practices referred to in point (d) of the first subparagraph shall be gender neutral.
2.
When establishing the arrangements referred to in paragraph 1, the criteria set out in Articles 28 to 33 shall be taken into account.
3.
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.
4.
EBA, in consultation with ESMA, shall issue guidelines on the application of the governance arrangements referred to in paragraph 1.
EBA, in consultation with ESMA, shall issue guidelines in accordance with Article 16 of Regulation (EU) No 1093/2010 on gender neutral remuneration policies for investment firms.
Within two years of the date of publication of those guidelines, EBA shall issue a report on the application of gender neutral remuneration policies by investment firms based on the information collected by the competent authorities.