(1) Institutions shall ensure that its management body -

(a) defines, oversees and is accountable for the implementation of the governance arrangements that ensure effective and prudent management of the institution, including the segregation of duties in the organisation and the prevention of conflicts of interest, and

(b) monitors, and periodically assesses, the effectiveness of the institution's governance arrangements and takes appropriate steps to address any deficiencies.

(2) The governance arrangements, referred to in paragraph (1)(a), shall comply with the following principles:

(a) the management body shall have the overall responsibility for the institution and approve and oversee the implementation of the institution's strategic objectives, risk strategy and internal governance;

(b) the management body shall ensure the integrity of the accounting and financial reporting systems, including financial and operational controls and compliance with the law and relevant standards;

(c) the management body shall oversee the process of disclosure and communications;