+Article 16 1

Article 16 1

1.   When assessing the adequacy of the process for the approval of trading limit breaches referred to in Article 104b(2), point (f), of Regulation (EU) No 575/2013, competent authorities shall verify whether:

(a)

the institution has a clear and documented procedure for the approval by the management body of breaching trading limits;

(b)

the management body has specified materiality conditions according to which any breach of the trading limits are to be reported to the management body itself, irrespective of the level where the trading limits have been approved;

(c)

the risk control unit documents any breaches of the trading limits and reports such breaches to the responsible committee, sub-committee or individual manager;

(d)

the committee, sub-committee or individual manager referred to in point (c) either takes action when a trading limit is breached, or reports such breach to the management body, in accordance with point (b);

(e)

the documentation referred to in point (c) comprises the magnitude and main causes of the breach of the trading limit, including:

(i)

any increase in the trading positions;

(ii)

any methodological changes introduced in the internal risk-measurement model;

(iii)

any developments in market conditions.

1. Ħarsa ġenerali

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1.1 Referenzi

1.2 Rekwiżiti identifikati

1.3 Standards relatati

2. Rekwiżiti identifikati

Rekwiżiti

3. Standards relatati

Standards