What does Principle 6 emphasize for approved persons regarding their management responsibilities?

Principle 6 highlights the importance of diligence in managing the business for approved persons. This means that individuals in positions of authority must exercise care, attention, and commitment to ensure that their organization is being run effectively and responsibly. Diligence encompasses various aspects, including making informed decisions, leading their teams towards achieving business goals, and ensuring that the organization complies with regulatory standards.

By emphasizing diligence, the principle underscores the expectation that approved persons will proactively identify and mitigate risks, maintain high standards of conduct, and strive for operational excellence. This approach builds trust with stakeholders and contributes to the overall integrity and stability of the financial system.

The other options, while relevant to effective management in some contexts, do not encapsulate the core focus of Principle 6. Transparency in operations is important, but it is not the primary emphasis of this principle. Regular audits, although critical for oversight, do not directly speak to an individual’s active management responsibilities. Documentation of compliance processes, while essential for regulatory adherence, is more of a supportive activity rather than a reflection of the diligence expected from those managing the business.