Section 56
Functions and duties of board of directors
of Financial Services Act 2013
(1)
The business and affairs of an institution shall be managed under the direction and oversight of its board of directors, subject to this Act and any other written law which may be applicable to the
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institution.
(2)
Without limiting the generality of subsection (1), the board of directors shall—
(a)
set and oversee the implementation of business and risk objectives and strategies and in doing so shall have regard to the long term viability of the institution and reasonable standards of fair dealing;
(b)
ensure and oversee the effective design and implementation of sound internal controls, compliance and risk management systems commensurate with the nature, scale and complexity of the business and structure of the institution;
(c)
oversee the performance of the senior management in managing the business and affairs of the institution;
(d)
ensure that there is a reliable and transparent financial reporting process within the institution; and
(e)
promote timely and effective communications between the institution and the Bank on matters affecting or that may affect the safety and soundness of the institution.
(3)
In carrying out its functions or duties under this Division, the board of directors of an institution shall have regard to the interests of depositors or policy owners of the institution and participants.