| 1. |
VASPs shall establish a framework for governing their Subsidiaries within the Group. The Board shall be responsible for determining how Subsidiary governance is addressed and conducted. |
| 2. |
The Board shall approve the governance framework for the Subsidiaries that sets out the powers within the Subsidiaries and ensure that the boards of the Subsidiaries implement the governance framework for their respective Subsidiary. |
| 3. |
The governance framework shall include—
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a. |
planning of the rights and the roles of the VASP; |
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b. |
company policies and procedures adopted by the Subsidiaries; |
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c. |
participation of the Board with the boards of the Subsidiaries prior to the VASP exercising its right to elect members to the boards of the Subsidiaries; and |
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d. |
restrictions imposed on the Board members not to use any information obtained as a member of the board of a Group Entity for the purposes of another company within the Group.
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| 4. |
VASPs shall verify the performance of the governance framework of the Subsidiaries.
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