Subsection 4: Specialist committees

In investment firms of significant importance in relation to their size, the board of directors, the supervisory board or any other body exercising equivalent supervisory functions shall establish a risk committee. The risk committee shall be composed of members of the board of directors, the supervisory board or any other body exercising equivalent supervisory functions who do not exercise management functions within the investment firm. The branches of investment firms…

The members of the risk committee set up pursuant to the provisions of Article L. 533-31 have the knowledge, skills and expertise to enable them to understand, manage and monitor the investment firm’s risk strategy and risk appetite in full knowledge of the facts.

The risk committee shall advise the board of directors, the supervisory board or any other body exercising equivalent supervisory functions on matters concerning the investment firm’s overall risk strategy and overall risk appetite, both current and future. It assists the board of directors, the supervisory board or any other body exercising equivalent supervisory functions when it supervises the implementation of this strategy by the persons mentioned in Article L. 532-2…

The board of directors, the supervisory board or any other body exercising equivalent supervisory functions and, where applicable, the risk committee shall be provided with full information on the situation of the investment firm. The terms and conditions of this information shall be specified by order of the Minister responsible for the economy.

I.-Investment firms of significant size, the board of directors, the supervisory board or any other body exercising equivalent supervisory functions shall set up a compensation committee. Branches of third-country undertakings referred to in Article L. 532-48 that are large in relation to their size are required to provide evidence of the existence of a compensation committee or a system for achieving the same objectives that is competent for these branches….

A decree of the Conseil d’Etat shall lay down the conditions for the application of this sub-section.