Entire Section

  • PIB 8.2 PIB 8.2 Systems and Controls Requirements

    • PIB 8.2.1 PIB 8.2.1

      An Authorised Firm in Category 1, 2 or 5 that is a member of a Group must establish and maintain systems and controls for the purpose of:

      (a) monitoring the effect on the Authorised Firm of:
      (i) its relationship with other members of its Group;
      (ii) its membership in its Group; and
      (iii) the activities of other members of its Group;
      (b) monitoring compliance with Financial Group supervision requirements below, including systems for the production of relevant data;
      (c) monitoring funding within the Group; and
      (d) monitoring compliance with Financial Group reporting requirements.
      Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]

      • PIB 8.2.1 Guidance

        For the purposes of the above requirement, an Authorised Firm may take into account its position within its Group. For instance, it would be reasonable for a small Authorised Firm within a larger Group to place some reliance on its parent to ensure that appropriate systems and controls are in place.

        Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]

    • PIB 8.2.2

      (1) An Authorised Firm must have systems and controls to enable it to determine and monitor:
      (a) its Financial Group Capital Requirement; and
      (b) whether the amount of its Financial Group Capital Resources is, and is likely to remain, greater than the amount of its Financial Group Capital Requirement.
      (2) Such systems and controls must include an analysis of:
      (a) realistic scenarios which are relevant to the circumstances of the Financial Group; and
      (b) the effects on the Financial Group Capital Requirement and on the Financial Group Capital Resources if those scenarios occurred.
      Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]