Article 17
Governance policy
1. Crowdfunding service providers shall have in place a governance policy to govern the contingency fund. That policy shall ensure that internal governance arrangements, processes and mechanisms are consistent, well integrated and adequate to ensure the well-functioning of the contingency fund.
2. The governance policy referred to in paragraph 1 shall contain all of the following elements and information:
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(a) |
the purpose of the contingency fund; |
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(b) |
the legal and operational structure of the contingency fund, including whether it is operated by the crowdfunding service provider itself or by a third party; |
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(c) |
the duration of the contingency fund, including cases in which the fund has an unlimited term. |
3. In the event that the contingency fund is operated by a third party, the governance policy referred to in paragraph 1 shall also contain all of the following:
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(a) |
the composition of the management body of the contingency fund; |
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(b) |
the responsibilities and duties of the management body of the contingency fund; |
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(c) |
a description of the competences and skills of each member of the management body of the contingency fund; |
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(d) |
the frequency of the meetings of the management body of the contingency fund; |
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(e) |
the reporting requirements between the management body of the contingency fund and the management body of the crowdfunding service provider; |
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(f) |
the responsibilities for the documentation, management and control of the outsourcing arrangements; |
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(g) |
the identification of one or more senior staff members who are directly accountable to the management body of the crowdfunding service provider and responsible for managing and overseeing the risks of outsourcing arrangements, including the respective documentation. |