PIB 8.2 PIB 8.2 Systems and Controls Requirements
PIB 8.2.1 PIB 8.2.1
Authorised Firmin Category1, 2 or 5 that is a member of a Groupmust establish and maintain systems and controls for the purpose of:(a) monitoring the effect on the Authorised Firmof:(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 Groupsupervision requirements below, including systems for the production of relevant data;(c) monitoring funding within the Group; and(d) monitoring compliance with Financial Groupreporting requirements.
PIB 8.2.1 Guidance
For the purposes of the above requirement, an
Authorised Firmmay take into account its position within its Group. For instance, it would be reasonable for a small Authorised Firmwithin a larger Groupto place some reliance on its parent to ensure that appropriate systems and controls are in place.
PIB 8.2.2(1) An
Authorised Firmmust 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 Resourcesis, 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 Requirementand on the Financial Group Capital Resourcesif those scenarios occurred.