Article 59, § 2 of the Banking Law provides that the institution’s management committee should report to the statutory governing body, the accredited statutory auditor and the supervisory authority on the evaluation of the effectiveness of the organisational structure referred to in Article 21 of the Banking Law, including the specific organisational measures for the provision of investment services, the marketing of structured deposits and the provision of advice to customers on such products, and on the measures taken, if any, to remedy any deficiencies that may have been identified.

It should be noted that the new Article 59, § 2 of the Banking Law provides that significant institutions which come under the direct supervision of the ECB should submit this report annually to the supervisory authority, whereas all other institutions should submit it only at least every two years^[1].

Circular NBB_2011_09 provides further information on the various reports that the institution’s senior management should submit to the accredited statutory auditor and the supervisory authority. This circular also sets out the NBB's expectations with regard to periodic prudential reporting. For more information, please refer to this circular.

^[1] However, these other institutions, which are not subject to the ECB's direct supervision, should nevertheless provide the following in the year in which no reporting is required:

• a summary of the main developments and changes, or in the absence thereof, the significant developments and changes introduced by the senior management during the period covered by the internal control reporting (including for investment services and activities); and
• a statement by the senior management in which it formally confirms that the organisation and the measures taken (including investment services and activities) comply with legal and regulatory requirements.