• PRU A2.3 PRU A2.3 Risk management systems and controls for Trading Book

    • PRU A2.3.1

      An Authorised Person must establish and maintain effective systems and controls to manage its Trading Book.

    • PRU A2.3.2

      An Authorised Person must establish and maintain systems and controls sufficient to provide prudent and reliable valuation estimates. These systems and controls must include:

      (a) documented policies and procedures for the process of valuation (including clearly defined responsibilities of the various areas involved in the determination of the valuation, sources of market information and review of their appropriateness, frequency of independent valuation, timing of closing prices, procedures for adjusting valuations, month end and ad-hoc verification procedures); and
      (b) reporting lines for the department accountable for the valuation process that are clear and independent of the front office.