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  • CSD-6.5 CSD-6.5 Criteria to Determine Failure to Discharge Duties or Functions by Officers

    • CSD-6.5.1

      For the purposes of Paragraph CSD-6.4.2 of this Module, the CBB may, in determining whether a chairman, chief executive officer or director, or any officer who is a person stated in a notice referred to in Paragraph CSD-6.3.2, of a licensed clearing house or licensed central depository has failed to discharge the duties or functions of his office, take into consideration whether that person has taken reasonable steps to discharge the following duties:

      (a) Ensure the proper functioning of the licensed clearing house or licensed central depository;
      (b) Ensure the compliance of the licensed clearing house or licensed central depository with any relevant laws or regulations of any jurisdication in which it is incorporated, or in which it operates;
      (c) Set out and ensure compliance with written policies on all operational areas of the licensed clearing house or licensed central depository, including its financial policies, accounting and internal controls, internal auditing and compliance with all laws and rules governing the operations of the licensed clearing house or licensed central depository;
      (d) Identify, monitor and address the risks associated with the business activities of the licensed clearing house or licensed central depository on an on-going basis;
      (e) Ensure that the business activities of the licensed clearing house or licensed central depository are subject to adequate internal audit;
      (f) Oversee the financial undertakings or exposure of the licensed clearing house or licensed central depository to risks of any nature, by setting out proper delegation limits and risk management controls; and
      (g) Ensure:
      (i) That the licensed clearing house or licensed central depository maintains written records of the steps taken by it to monitor compliance with its policies, the limits on discretionary powers and its accounting and operating procedures; and
      (ii) That every report, return or statement submitted by the licensed clearing house or licensed central depository to the CBB is complete and accurate.
      Amended: April 2016