Authorised Firm must ensure that its Governing Body is ultimately responsible for the Liquidity Risk assumed by the firm as well as the adequacy of systems, controls and processes used to manage that risk.
(2) Without limiting the operation of (1), the responsibilities of an
Authorised Firm's Governing Body in respect of Liquidity Risk include:
(a) approving the
Authorised Firm's Liquidity Risk policy;
(b) establishing and maintaining a senior management structure with clearly defined responsibilities and roles for the management of
Liquidity Risk and for ensuring compliance with the Authorised Firm's Liquidity Risk policy;
(c) ensuring the senior management in (b) and other relevant personnel have the necessary experience to manage
(d) monitoring the
Authorised Firm's overall Liquidity Risk profile on a regular basis by receiving adequate reporting and being aware of any material changes in the Authorised Firm's current or prospective Liquidity Risk profile;
(e) ensuring that
Liquidity Risk is adequately identified, assessed, mitigated, controlled and monitored in accordance with the Authorised Firm's Liquidity Risk policy;
(f) ensuring that the
Liquidity Risk policy are is documented; and
(g) ensuring that the
Liquidity Risk policy are is reviewed at least annually.