Strong corporate governance begins with an effective and accountable Board of Directors (BoD). For Investment Firms and other regulated financial entities, the role of the Board extends far beyond approving strategic decisions. Directors are expected to provide effective oversight, understand the risks facing the organisation, maintain appropriate governance arrangements and ensure that the firm operates in accordance with its regulatory obligations.
As regulatory expectations continue to develop, Executive and Non-Executive Directors must understand both their individual responsibilities and the collective responsibilities of the management body. Firms must also ensure that their directors remain suitable for their roles and collectively possess the knowledge, skills and experience required to manage and supervise the organisation effectively.
With this blog post, Despoina Charalampous, Associate of SALVUS Funds and an instructor at the Institute for Professional Excellence, introduces the key themes covered in the online course “Understand the Duties and Responsibilities of the Board of Directors in 2026.” The course provides a practical understanding of Board governance and suitability requirements, including the assessment of management body members on both an individual and collective basis.
Strengthen your corporate governance knowledge by understanding the duties, responsibilities and regulatory expectations applicable to Boards of Directors in 2026.
General Duties & Responsibilities
The Board of Directors plays a critical role in ensuring the firm is governed effectively, operates ethically, and remains compliant with regulatory requirements. Key responsibilities include:
- Overseeing governance arrangements and internal control systems.
- Setting and monitoring the firm's strategic objectives and business goals.
- Defining and overseeing the firm's risk management framework and risk appetite.
- Ensuring the integrity of financial reporting and regulatory disclosures.
- Supervising senior management and promoting accountability.
- Preventing conflicts of interest and safeguarding clients' interests.
- Promoting an ethical corporate culture through strong values and codes of conduct.
- Considering emerging risks, including Environmental, Social and Governance (ESG) factors, in decision-making.
An informed and engaged Board strengthens governance, enhances resilience, and supports the firm's long-term success.
Suitability & Diversity of the Management BodyEffective governance begins with a suitable and diverse board. Board members should possess the integrity, competence, leadership, judgment, and commitment necessary to oversee the institution responsibly, manage risks effectively, and support sound decision-making.
Diversity complements suitability by bringing together different perspectives, experiences, backgrounds, ages, and genders within the management body. A well-structured Suitability & Diversity Policy promotes balanced governance, independent thinking, and stronger outcomes for both the institution and its stakeholders
Delivered by
Despoina Charalampous, Associate of
SALVUS Funds, through the IforPE platform, the course has been designed to equip professionals with the knowledge required to understand the governance responsibilities of a Board of Directors and the requirements surrounding the suitability of the management body.
The self-paced course is particularly relevant to Executive and Non-Executive Directors appointed to Cyprus Investment Firms, Crypto-Asset Service Providers and other CySEC-regulated entities. It is also suitable for professionals entrusted with compliance and governance responsibilities.
Professionals completing the course will strengthen their understanding of Board composition and governance, Executive and Non-Executive Director responsibilities, suitability and diversity requirements, and the practical assessment of the management body.
The syllabus of tof the course is as follows:
- Board of Directors: Composition & Requirements
- Composition
- Sufficient time commitment
- Reputation, honesty and integrity
- Independence of mind
- Collective knowledge, skills and experience
- General Duties & Responsibilities
- Governance arrangements
- Define, approve and oversee
- AML/CFT obligations
- Board of Directors meetings
- Committees
- Significant Investment Firms
- Executive vs. Non-Executive Directors
- Management function
- Supervisory function
- AML responsible director
- ICARA Process
- Suitability & Diversity of the Management Body
- Key suitability factors
- Diversity and governance
- Suitability & Diversity Policy
- Training
- Assessment of the Management Body
- Individual assessment
- Collective assessment
The course is delivered through online video recordings and downloadable PDF study material, allowing professionals to learn whenever and wherever it suits them best. Participants can progress at their own pace, revisit topics as needed and reinforce their knowledge through accessible and structured learning resources.
Upon successful completion, participants receive a certificate awarding 5 CPD hours, recognised by CySEC, the Central Bank of Cyprus, and other professional supervisory bodies. The course contributes towards the annual CPD requirements of CySEC Advanced and Basic Certification holders, as well as professionals registered with ICPAC and the Cyprus Bar Association.
