Schedule 3, paragraph 2A

The composition of the management body of an exchange must reflect an adequately broad range of experience. The management body must possess adequate collective knowledge, skills and experience in order to understand the exchange's activities and main risks. Members of the management body must— commit sufficient time to perform their functions on the management body; act with honesty, integrity and independence of mind; and effectively— assess and challenge, where necessary, the decisions of the senior management; and oversee and monitor decision-making. The management body must— define and oversee the implementation of governance arrangements that ensure the effective and prudent management of the exchange in a manner which promotes the integrity of the market, which at least must include— the segregation of duties in the organisation; and the prevention of conflicts of interest; monitor and periodically assess the effectiveness of the exchange's governance arrangements; and take appropriate steps to address any deficiencies found as a result of the monitoring under paragraph (b). An exchange must— devote adequate human and financial resources to the induction and training of members of the management body; ensure that the management body has access to the information and documents it requires to oversee and monitor management decision-making; and notify the FCA of the identity of all the members of its management body. An exchange and, if it has a nomination committee, its nomination committee must engage a broad set of qualities and competences when recruiting persons to the management body, and for that purpose have a policy promoting diversity on the management body. The number of directorships a member of the management body can hold at the same time must take into account individual circumstances and the nature, scale and complexity of the exchange's activities.

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Source: legislation.gov.uk · retrieved 2026-09-04