Related provisions for BIPRU 12.3.10
1 - 9 of 9 items.
The approach taken in BIPRU 12.3 is to set out:(1) overarching systems and controls provisions in relation to a firm's management of its liquidity risk;(2) provisions outlining the responsibilities of that firm'sgoverning body and senior managers for the oversight of liquidity risk;(3) more detailed provisions covering a number of specific areas, including:(a) pricing liquidity risk;(b) intra-day management of liquidity;(c) management of collateral;(d) management of liquidity
(1) A firm should ensure that it has in place a robust framework to project fully over an appropriate set of time horizons cash flows arising from assets, liabilities and off-balance sheet items.(2) A firm should ensure that its strategies, policies, processes and systems in relation to liquidity risk support the liquidity risk tolerance established by its governing body in accordance with BIPRU 12.3.8R.(3) A firm should ensure that its strategies, policies, processes and systems
As part of the SLRP, the FSA will assess the appropriateness of the liquidity risk tolerance adopted by an ILAS BIPRU firm to ensure that this risk tolerance is consistent with maintenance by the firm of adequate liquidity resources for the purpose of the overall liquidity adequacy rule. The FSA will expect a firm to provide it with an adequately reasoned explanation for the level of liquidity risk which that firm'sgoverning body has decided it should assume. In assessing the
A firm must ensure that its senior managers:(1) continuously review that firm's liquidity position, including its compliance with the overall liquidity adequacy rule; and(2) report to its governing body on a regular basis adequate information as to that firm's liquidity position and its compliance with the overall liquidity adequacy rule and with BIPRU 12.3.4R.
Although a firm'ssenior managers are likely to develop strategies, policies and practices for the management of that firm'sliquidity risk, it is the responsibility of a firm'sgoverning body to approve those strategies, policies and practices as adequate. In determining the adequacy of those strategies, policies and practices, a firm'sgoverning body should have regard to that firm'sliquidity risk tolerance established in accordance with BIPRU 12.3.8R.
In order to ensure compliance with the overall liquidity adequacy rule and with BIPRU 12.3.4R, a firm must:(1) conduct on a regular basis appropriate stress tests so as to:(a) identify sources of potential liquidity strain;(b) ensure that current liquidity exposures continue to conform to the liquidity risk tolerance established by that firm'sgoverning body; and(c) identify the effects on that firm's assumptions about pricing; and(2) analyse the separate and combined impact of
Consistent with BIPRU 12.3.5R, the FSA expects that the extent and frequency of such testing, as well as the degree of regularity of governing body review under BIPRU 12.4.2R, should be proportionate to the nature scale and complexity of a firm's activities, as well as to the size of its liquidity risk exposures. Consistent with the FSA's statutory objectives under the Act, in assessing the adequacy of a firm's stress testing arrangements (including their frequency and the regularity
(1) A firm should ensure that the results of its stress tests are:(a) reviewed by its senior managers;(b) reported to that firm'sgoverning body, specifically highlighting any vulnerabilities identified and proposing appropriate remedial action;(c) reflected in the processes, strategies and systems established in accordance with BIPRU 12.3.4R;(d) used to develop effective contingency funding plans;(e) integrated into that firm's business planning process and day-to-day risk management;
The FSA also anticipates that a whole-firm liquidity modification would be made subject to a number of ongoing conditions and requirements. These are likely to include:(1) the FSA receiving annual confirmation from the Home State regulator or third country competent authority that it remains satisfied with the arrangements in respect of that firm for liquidity supervision and their operation;(2) an annual meeting with the Home State regulator or third country competent authority