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  • Risk Monitoring

    • RM-2.1.5

      Investment firm licensees must implement an effective system for monitoring counterparty risk which should be described in a credit risk policy.

      Adopted: July 2007

    • RM-2.1.6

      Investment firm licensees must meet the Counterparty Risk Requirements in Module CA-3.3. The licensee must monitor its exposures and must notify the CBB if its total exposure to an individual counterparty exceeds 25% of aggregate counterparty exposures and/or 25% of the licensee's regulatory capital.

      Adopted: July 2007

    • RM-2.1.7

      Individual credit facilities and overall limits should be periodically reviewed, in order to check their appropriateness for both the current circumstances of the counterparty and the firm's current internal and external economic environment. The frequency of review should be appropriate to the nature of the facility, but in any event should take place at least once a year.

      Adopted: July 2007