Regulatory Alerts2021-10-21
Principles of Conduct of Derivatives Business
The Financial Services Commission of the Bailiwick of Guernsey has issued these Principles to mandate prudent risk management standards for all local financial institutions conducting derivatives business. Institutions must maintain adequate resources, board-approved policies, segregated client and proprietary trading, independent daily reviews, robust information systems, and clear risk disclosures to effectively oversee derivatives activities. Although non-statutory, adherence directly impacts fitness assessments, with material failures potentially triggering the refusal, suspension, or cancellation of regulatory licences.
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