Activity
Create TO-BE model for processes
Perform Governance Framework gap analysis
Description
Description
based on recommendations from framework
Organisation
Responsible
Project Team
Consulted
Middle Management
Business Governance Expert
Process Expert
Input/Output
Input data
Process documentation
Legal framework regulations
Implementation plan
Output data
TO-BE model
Requirements
Requirements (Basel II)
Operational risk disclosure
Review of adequacy of risk assessment
Data analysis
Estimations of exposure at default (EAD)
Supervisory review of compliance with minimum standards
General qualitative disclosure requirement
Data collection
Comprehensive assessment of risks
Market risk disclosure
Capital adequacy disclosure
Equities disclosure
Principle 4
Credit Risk – Securitisation Framework
Principle 1: Banks should have a process for assessing their overall capital adequacy
Standardized approach
Board and senior management oversight
Assessment of capital adequacy
Estimations of loss given default (LGD)
Internal Ratings Based Approach
Capital structure disclosure
Interest rate risk in the banking book disclosure
Principle 3
Principle 2
Credit risk disclosure
Internal control review
Estimations of probability of default (PD)
Assessment of the control environment
Data quality
Data warehousing
Supervisory response
Trading Book Issues
Sound capital assessment
Basic Indicator Approach
Standardised Approach
Monitoring and reporting
Advanced Measurement Approach
Requirements (SOX)
Section 306: Insider Trades During Pension Fund Black-Out Periods.
Section 802: Criminal penalties for altering documents
Section 409: Real Time Issuer Disclosures
Section 402: Enhanced Conflict of Interest Provisions
Section 407: Disclosure of Audit Committee Financial Expert
Section 405: Exemption
Section 301: Public Company Audit Committees.
Section 302: Corporate Responsibility For Financial Reports
Section 401: Disclosures In Periodic Reports
Section 1102: Tampering With a Record or Otherwise Impeding an Official Proceeding
Section 206: Conflicts of Interest.
Section 406: Code of Ethics for Senior Financial Officers
Section 1001: Sense of the Senate Regarding the Signing of Corporate Tax Returns by Chief Executive Officers.
Section 201: Services Outside The Scope Of Practice Of Auditors.
Section 403: Disclosures Of Transactions Involving Management And Principal Stockholders.
Section 303: Improper Influence on Conduct of Audits
Section 906. Corporate responsibility for financial reports
Section 203: Audit Partner Rotation.
Section 105: Investigations And Disciplinary Proceedings.
Section 304: Forfeiture of Certain Bonuses and Profits
Section 404: Management Assessment Of Internal Controls
Requirements (MIFID)
Article 29 General requirements for information to clients
Article 19 Conduct of business obligations when providing investment services
Article 31 Information about financial instruments
Article 12 Personal transactions
Article 21 Obligation to execute orders on terms most favourable to the client
Article 40 Reporting obligations in respect of execution of orders other than for portfolio management
Article 21 Conflicts of interest potentially detrimental to a client
Article 5 General organisational requirements
Article 22 Conflicts of interest policy
Article 30 Post-trade transparency requirements for MTFs
Article 19 Use of client financial instruments
Article 12 Reporting channels
Article 42 Additional reporting obligations for portfolio management or contingent liability transactions
Article 43 Statements of client financial instruments or client funds
Article 7 Record-keeping of client orders and decisions to deal
Article 37 Provisions common to the assessment of suitability or appropriateness
Article 8 Record-keeping of transactions
Article 27 Conditions with which information must comply in order to be fair, clear and not misleading
Article 26 Monitoring of compliance with the rules of the MTF and with other
Article 45 Duty of investment firms carrying out portfolio management and reception and transmission of orders to act in the best interests of the client
Article 14 Trading process and finalisation of transactions in an MTF
Article 47 General principles
Article 14 Conditions for outsourcing critical or important operational functions or investment services or activities
Article 23 Obligations of investment firms when appointing tied agents
Article 48 Aggregation and allocation of orders
Article 23 Record of services or activities giving rise to detrimental conflict of interest
Article 6 Compliance
Article 3 Conditions applying to the provision of information
Article 32 Information requirements concerning safeguarding of client financial instruments or client funds
Article 36 Assessment of appropriateness
Article 27 Obligation for investment firms to make public firm quotes
Article 49 Aggregation and allocation of transactions for own account
Article 51 Retention of records
Article 13 Organisational requirements
Article 15 Service providers located in third countries
Article 17 Depositing client financial instruments
Article 24 Quotes reflecting prevailing market conditions
Article 18 Conflicts of interest
Article 26 Inducements
Article 28 Post-trade disclosure by investment firms
Article 25 Obligation to uphold integrity of markets, report transactions and maintain records
Article 29 Publication and availability of pre- and post-trade transparency data
Article 8 Internal audit
Article 9 Persons who effectively direct the business
Article 44 Best execution criteria
Article 9 Responsibility of senior management
Article 7 Risk management
Article 46 Execution policy
Article 41 Reporting obligations in respect of portfolio management
Article 17 Pre-trade transparency obligations
Article 18 Depositing client funds
Article 35 Assessment of suitability
Article 30 Information about the investment firm and its services for retail clients and potential retail clients
Article 10 Complaints handling
Article 31 Disclosure of client limit orders
Article 10 Shareholders and members with qualifying holdings
Article 16 Safeguarding of client financial instruments and funds
Article 32 Arrangements for making information public
Article 6 Scope of authorisation
Article 39 Retail client agreement
Article 29 Pre-trade transparency requirements for MTFs
Article 33 Information about costs and associated charges
Article 22 Client order handling rules
Article 16 Regular review of conditions for initial authorisation
Article 52 Investment advice
Article 7 Procedures for granting and refusing requests for authorisation
Article 27 Post-trade transparency obligation
Article 20 Reports by external auditors
Article 28 Deferred publication of large transactions
Article 20 Provision of services through the medium of another investment
Article 25 Additional organisational requirements where a firm produces and disseminates investment research