Instruction No. 2/2022

Instruction No. 2/2022
BO No. 12/2021 3rd Supplement • 2022/01/10
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Topics
Markets :: Money Markets
Mod. 99999940/T – 01/14
Index
Text of the Instruction
Text of the Instruction
Subject: Amending Instruction No. 3/2015
Taking into account the acquired practice with the verification model of the procedures and systems used for the presentation of credit rights by counterparties of the Bank of Portugal, some changes considered necessary have been introduced. Thus, in the exercise of the competence attributed to it by Articles 12, 15, 16, and 24 of its Organic Law, approved by Law No. 5/98 of January 31, in its current version, the Bank of Portugal determines:
Instruction No. 3/2015 (BO No. 5, of 15-05-2015) is amended as follows:

1. Annex XIV, No. 4 is amended, taking the following wording:
2. Reporting model for the verification of procedures and systems used for the presentation of credit rights – Initial Certification and Regular Certification
   Within the scope of audit actions, external auditors must certify the procedures and systems used by the counterparty to submit information on credit rights. The initial ex-ante certification must be carried out before the first mobilization of credit rights by the counterparty. Subsequent certifications of the procedures and systems must take place at least every five years. For this purpose, external auditors must resort, whenever appropriate, to a sample of credit rights, carrying out management simulations and future submission of credit rights information to the Bank and performing the verifications deemed adequate to certify the required requirements. The verifications by external auditors must focus on the submission of information by counterparties directly to the banking loan information systems, and on information communicated to the Credit Registry (CRC) and used by those systems within the scope of mobilizing credit rights as collateral assets. Based on these verifications, external auditors must pronounce themselves on the reliability/quality of the counterparty's procedures and systems, according to the reporting model to the Bank presented below.