CHAPTER VIRISK MANAGEMENT

(Article 51(1) of Directive 2009/65/EC)

SECTION 1Risk management policy and risk measurement

Article 39Assessment, monitoring and review of risk management policy

1

Member States shall require management companies to assess, monitor and periodically review:

a

the adequacy and effectiveness of the risk management policy and of the arrangements, processes and techniques referred to in Articles 40 and 41;

b

the level of compliance by the management company with the risk management policy and with arrangements, processes and techniques referred to in Articles 40 and 41;

c

the adequacy and effectiveness of measures taken to address any deficiencies in the performance of the risk management process.

2

Member States shall require management companies to notify to competent authorities of their home Member State any material changes to the risk management process.

3

Members States shall ensure that requirements laid down in paragraph 1 are subject to review by the competent authorities of the management company’s home Member State on an on-going basis and accordingly when granting authorisation.