Internal governance and control

An investment firm must on its website explain how it organises and controls its operations. Here you can find information about Lysa’s internal governance and control. 

Internal governance and control comprises the framework of internal steering documents, processes, procedures and reporting which have been established to ensure a sound and efficient operation, reliable financial reporting and the compliance with applicable external regulations. An important part of the internal control is risk management. Risk management means the identification, measure, surveillance, control and reporting of the risks connected to the operations. 

Lysa’s shareholders appoint the Board of Directors at the General Meeting. Lysa’s Board of Directors is ultimately responsible for internal governance and control. More information about Lysa’s board members and their experience and competence can be found under “About Lysa”. 

As part of the management of the internal governance and control, Lysa applies the three lines of defence model. 

The first line of defence consists of the operational management. The first line of defence is responsible for the risks in the business. This entails a responsibility to control and manage the risks that arise. This responsibility rests with the CEO, CTO and COO as well as other employees. 

The second line of defence consists of the functions for risk management and compliance which are independent of the business. The second line is responsible for controls, advice and support relating to the first line’s management of the risks and compliance. Further, the compliance function will evaluate whether the measures taken to remedy any deficiencies are sufficient and provide advice and support to the Board of Directors, the CEO and the General Counsel regarding compliance in the company’s licensed operations. The risk management and compliance functions report regularly to Lysa’s Board of Directors. 

The third line of defence consists of the function for internal audit. The function must be independent of the company’s other functions and the business, and operates on behalf of the Board of Directors. The function will, based on a revision plan set by the Board of Directors, review and assess whether the company’s systems, control mechanisms and procedures are suitable and efficient based on regulatory requirements and the activities conducted. The function must also issue recommendations based on the results and review and control that the recommendations are adhered to. The function must regularly report to the Board of Directors.

The auditor is appointed by the shareholders at the Annual General Meeting. The auditor reviews whether Lysa’s annual report and accounts are correct and complete and gives a true and fair view of Lysa and its financial position. The auditor also reviews the Board of Directors’ and the CEO’s management of Lysa’s affairs.