Requirements for the issuer's corporate governance
to be complied with for inclusion of bonds in Level 1
| № | Requirements | Level 1 |
|---|---|---|
| 1 | The issuer that is a business entity shall have an elected board of directors. | + |
| 2 | The board of directors or a competent governance body of the issuer that is not a business entity shall approve the internal audit policy (the internal audit regulations). Such policy (regulations) set out the goals, objectives and terms of reference of the structural unit (external independent entity) performing the internal audit functions, and where an external independent entity is engaged to perform internal audit, also the procedure for the selection of, and contracting with, such entity. | + |
| 3 | The existence of a separate structural unit of the issuer performing internal audit functions, or an arrangement where internal audit is conducted by an external independent organisation engaged by the issuer. For the purposes hereof, the internal audit functions shall include, among other things: a) assessment of the internal control system effectiveness; b) assessment of the risk management system effectiveness (for credit institutions, verification of the effectiveness of the banking risk assessment methodology and banking risk management procedures established by the credit institution internal documents (methodologies, programs, rules, regulations and procedures governing the performance of banking transactions and deals, banking risk management), and verification of the completeness of the application of the above-mentioned documents, review of the risk management function performance); c) assessment of corporate governance matters (if a corporate governance committee does not exist). |
+ |
The head of the issuer's structural unit engaged in internal audit (the issuer's official responsible for internal audit to whom the head of such structural unit directly reports) shall be appointed to, and removed from, his respective office by the issuer's sole executive body pursuant to the decision of the issuer's board of directors, and shall functionally report to the issuer's board of directors, and administratively, to the sole executive body. For the purposes hereof, the above-mentioned persons shall not manage any of the issuer's functional areas of activity that require management decisions in relation to the audit targets.