Decision-making procedures, allocation of functions and responsibilities and internal reporting lines
Article 1
Open ↗1. The governance arrangements of benchmark administrators shall be approved by the management body, if any, and shall specify, in a clear and well documented manner, all of the following: (a) the procedures for the management’s decision-making; (b) an organisational chart of the benchmark administrator, setting out how functions and responsibilities are allocated to the persons directly involved in the provision of a benchmark; (c) internal reporting lines. 2. The procedures referred to in paragraph 1, point (a), shall cover all of the following, where applicable: (a) the composition, roles and responsibilities of the management body and of any related committees; (b) the structure of the management body; (c) the appointment of the management body. 3. The organisational chart referred to in paragraph 1, point (b), shall specify any outsourced functions within and outside the administrator’s group and any shared staff within the administrator’s group. In allocating functions and responsibilities, the governance arrangements of administrators shall ensure that, where persons perform multiple functions or are involved in various committees, they are able to commit sufficient time to the functions and responsibilities allocated to them and are not prevented from discharging their functions soundly, honestly and professionally. For the purposes of the first subparagraph, administrators shall take into account the number of meetings that the relevant person has to attend, the nature of the specific position and the related responsibilities and whether the person concerned carries out any other function or activity. 4. The governance arrangements of benchmark administrators shall provide for a clear remuneration framework for all persons directly involved in the provision of the benchmark, taking into account the functions and responsibilities allocated to them. 5. Benchmark administrators may choose not to apply paragraph 2, point (c), and paragraph 4 with respect to their non-significant benchmarks. 6. Benchmark administrators may choose not to apply paragraph 2, point (c), and paragraph 4 where such opt-out is appropriate and proportionate, having regard to the following: (a) the nature, scale and complexity of the activities of the administrator; (b) the likelihood of a conflict of interest arising between the provision of the benchmark and any other activities of the administrator; (c) the level of discretion involved in the process of provision of the benchmark.