The European Banking Authority (EBA) has launched a public consultation concerning the guidelines for internal governance for the Investment Firms Directive (IFD). It goes into detail about the governance provisions that Class 2 investment firms need to comply with, taking into account the proportionality principle. This governance framework helps investment firms to have a clear organisational structure, effectively manage their risks and have the right control mechanisms. The consultation runs until 17 March 2021.
The consultation paper specifies a number of governance provisions defined in the IFD, suich as the tasks, responsibilities and the organization of the investment firms. The goal of these provisions is to help investment firms manage the risks across all lines at all times and to help them adopt transparent structures to have a better supervision of the activities.