PIB 9.2.7 PIB 9.2.7(1) An
Authorised Firmmust hold sufficient liquidity resources and ensure that its Governing Bodysets appropriate liquidity limits to manage its Liquidity Riskeffectively under both day-to-day and stressed conditions.(2) An Authorised Firmmust periodically review and, where appropriate, adjust the limits referred to in (1) when its Liquidity Riskpolicy changes.(3) An Authorised Firmmust promptly escalate and resolve any policy or limit exceptions according to the processes described in its Liquidity Riskpolicy.
PIB 9.2.7 Guidance
Authorised Firmshould set limits to control its liquidity risk exposure and vulnerabilities. Limits and corresponding escalation procedures should be reviewed regularly. Limits should be relevant to the business in terms of its location, complexity of activity, nature of products, currencies and markets served. If an Authorised Firmbreaches a liquidity risk limit, it should implement a plan to review its exposure and reduce it to a level that is within the limit.