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Questions and Answers
What is the focus of Module No.3?
Which module covers the principles for IBUs?
What is the focus of Module No.5?
In which module can you find the criteria for approval of Approved Individuals?
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What is the focus of Module No.4?
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In which module can you find the application for 'Approved Individual' status?
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What is the focus of Module No.6?
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In which module can you find the principles for Approved Individuals and other employees?
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What is the focus of Module No.1?
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In which module can you find the exercise of two or more controlled functions by same individual?
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What is the focus of Module No.1-9?
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Study Notes
Business Strategy and Business Plan of the IBU
- The business strategy and business plan of the IBU must be approved by the governing body of the IBU, regardless of prior approval by the governing body of the banking company.
- The IBU's business strategy and business plan must be compliant with the requirements of the Authority.
Role of Senior Management
- Senior management is responsible for ensuring the effective implementation and maintenance of approved frameworks and plans throughout the IBU's operations.
Knowledge, Skills, and Expertise
- The governing body, senior management, and CEO/Head of the IBU must have an appropriate mix of knowledge, skills, and expertise to ensure effective management of the IBU.
- The composition of the governing body must reflect a broad range of experience in line with the types of operations proposed to be carried out by the IBU.
Remuneration Structure and Strategy
- The remuneration structure and strategy of the IBU must be consistent with the business objectives and strategies, and the identified risk parameters of the IBU.
- The remuneration structure and strategy must provide for effective alignment of risk outcomes and the roles and functions of the employees.
Staffing
- IBUs must provide adequate resources, including infrastructure and manpower, on an ongoing basis, commensurate with the size and nature of their operations.
- The Authority will engage with IBUs on an ongoing basis to assess the adequacy of resource deployment.
Compliance
- IBUs must establish and maintain compliance arrangements, including processes and procedures to ensure compliance with relevant regulations and directions.
- Compliance arrangements must be able to evidence compliance with regulations and directions as far as reasonably practicable.
Governance and Management
- The governing body of the IBU is responsible for overseeing the IBU's operations and ensuring compliance with regulations and directions.
- The governing body must have adequate knowledge, skills, and expertise to fulfill its responsibilities effectively.
Controlled and Designated Functions
- Controlled Functions refer to specific roles within the IBU that require approval from the Authority.
- Designated Functions refer to roles within the IBU that require specific skills and expertise.
Core Principles
- The IBU must operate in accordance with core principles, including integrity, transparency, and fairness.
- Approved Individuals and other employees must adhere to core principles in their performance of duties.
Systems and Controls
- The IBU must establish and maintain effective systems and controls to manage risks and ensure compliance with regulations and directions.
- The IBU must have adequate outsourcing arrangements in place and maintain proper records.
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Description
This quiz covers the business strategy and business plan of an International Banking Unit (IBU) and its compliance with regulatory requirements. Topics include approved frameworks, governing bodies, and banking companies.
