• LM-10.3 LM-10.3 Testing, Update and Maintenance

    • LM-10.3.1

      The CFP must be subject to regular testing to ensure its effectiveness and operational feasibility, particularly in respect of the availability of the contingency sources of funding listed in it.

      August 2018

    • LM-10.3.2

      The testing of the CFP must cover:

      (a) Verifying key assumptions, such as the ability to sell or repo certain assets or periodically draw down credit lines;
      (b) Ensuring that roles and responsibilities are appropriate and understood;
      (c) Confirming that contact information is up-to-date, with reporting lines clearly stated and synchronised with the latest organisation chart;
      (d) Proving the transferability of cash and collateral (especially across borders and entities); and
      (e) Reviewing that the necessary legal and operational documentation is in place to execute the plan at short notice.
      August 2018

    • LM-10.3.3

      The ALCO must review all aspects of the CFP following each testing exercise and ensure that follow-up actions are delivered.

      August 2018

    • LM-10.3.4

      The ALCO must review and update the CFP on an annual basis at least, or more often, as warranted by changes in business or market circumstances, to ensure that the CFP remains robust over time. Any changes to the CFP must be properly documented and approved by the Board (or its relevant delegated committee).

      August 2018

    • LM-10.3.5

      The CFP must be consistent with the bank's business continuity plans and should be operational under situations where business continuity arrangements have been invoked. As such, a bank should ensure effective coordination between teams managing issues surrounding liquidity crisis and business continuity.

      August 2018