Entire Section

  • Risk management

    • PIB A5.8.15 PIB A5.8.15

      (1) An Authorised Firm must take reasonable steps to establish and maintain such systems and controls to monitor and manage its Underwriting and sub-underwriting business as are appropriate to the nature, scale and complexity of its Underwriting and sub-underwriting business.
      (2) In particular, an Authorised Firm must have systems to monitor and control its Underwriting Exposures between the time of the initial commitment and working day one in the light of the nature of the risks incurred in the markets in question.
      Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]

      • PIB A5.8.15 Guidance

        An Authorised Firm should take reasonable steps to:

        a. allocate responsibility for the management of its Underwriting and sub-underwriting business;
        b. allocate adequate resources to monitor and control its Underwriting and sub-underwriting business;
        c. satisfy itself that its systems to monitor Exposure to Counterparties will calculate, revise and update its Exposure to each Counterparty arising from its Underwriting or sub-underwriting business;
        d. satisfy itself of the suitability of each person who performs functions for it in connection with the firm's Underwriting and sub-underwriting business having regard to the person's skill and experience; and
        e. satisfy itself that its procedures and controls to monitor and manage its Underwriting business address, on an on-going basis, the capacity of sub-underwriters to meet sub-underwriting commitments.
        Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]