Regulatory Standard 4

Regulatory Standard 4.1

The governing body ensures it receives good quality information and advice from staff and, where necessary, expert independent advisers, that is timely and appropriate    to its strategic role and decisions. The governing body is able to evidence any of its decisions.

Regulatory Standard 4.2

The governing body challenges and holds the senior officer to account for their performance in achieving the RSL’s purpose and objectives.

Regulatory Standard 4.3

The governing body identifies risks that might prevent it from achieving the RSL’s purpose and has effective strategies and systems for risk management and mitigation, internal control and audit.

Regulatory Standard 4.4

Where the RSL is the parent within a group structure it fulfils its responsibilities as required in our group structures guidance to:

a) control the activities of, and manage risks arising from, its subsidiaries;

b) ensure appropriate use of funds within the group;

c) manage and mitigate risk to the core business; and

d) uphold strong standards of governance and protect the reputation of the group for investment and other purposes.

Regulatory Standard 4.5

The RSL has an internal audit function. The governing body ensures the effective oversight of the internal audit programme by an audit committee or otherwise. It has arrangements in place to monitor and review the quality and effectiveness of internal audit activity, to ensure that it meets its assurance needs in relation to regulatory requirements and the Standards of Governance and Financial Management.

Where the RSL does not have an audit committee, it has alternative arrangements in place to ensure that the functions normally provided by a committee are discharged.

Regulatory Standard 4.6

The governing body has formal and transparent arrangements for maintaining an appropriate relationship with the RSL’s external auditor and its internal auditor.