The Second Session of the Legal Regulatory Commission

The Second Session of the Legal Regulatory Commission thumb

The Second Session of the Legal Regulatory Commission was held on 29th of March 2018

At the session were discussed the current issues related to the implementation of Entity Laws on Banking and related bylaws, especially in the part of the Laws that cover the subject of issuing approval for election or appointing members of the Supervisory Board. It was also discussed about the need to align the provisions in regard to the competences of Supervisory boards to adopt general business conditions and other general acts. Given the dilemma among the banks about the terms "key function bearers" and "key employee categories", the Commission considers that these are two essentially different categories but may not include the same circle of employees. Namely, key functions bearers perform those functions that make a significant impact on business operations i.e. whose termination of contract would probably endanger stability or disturbance in the essential services, while key employee categories are those categories of employees whose professional activity has a significant impact on the bank's risk profile itself.
The Commission further considered the problems in implementing the Executive Procedure Law as well as the working material of the Instruction on the form and content of the payment order and the procedures for execution of payment transactions to which it will subsequently make its comments as the material was delivered just before the session itself.