In this act Article 11 of 62
- recRecitals 1–60
- 1Definitions
- 2Information to be provided to ESMA for the recognition of a CCP
- 3Governance arrangements
- 4Risk management and internal control mechanisms
- 5Compliance policy and procedures
- 6Compliance function
- 7Organisational structure and separation of the reporting lines
- 8Remuneration policy
- 9Information technology systems
- 10Disclosure
- 11Internal auditing
- 12General requirements
- 13Transaction records
- 14Position records
- 15Business records
- 16Records of data reported to a trade repository
- 17Strategy and policy
- 18Business impact analysis
- 19Disaster recovery
- 20Testing and monitoring
- 21Maintenance
- 22Crisis management
- 23Communication
- 24Percentage
- 25Time horizon for the calculation of historical volatility
- 26Time horizons for the liquidation period
- 27Portfolio margining
- 28Procyclicality
- 29Framework and governance
- 30Identifying extreme but plausible market conditions
- 31Reviewing extreme but plausible scenarios
- 32Assessment of liquidity risk
- 33Access to liquidity
- 34Concentration risk
- 35Calculation of the amount of the CCP’s own resources to be used in the default waterfall
- 36Maintenance of the amount of the CCP’s own resources to be used in the default waterfall
- 37General requirements
- 38Cash collateral
- 39Financial instruments
- 40Valuing collateral
- 41Haircuts
- 42Concentration limits
- 43Highly liquid financial instruments
- 44Highly secured arrangements for the deposit of financial instruments
- 45Highly secured arrangements maintaining cash
- 46Non-cash collateral
- 47Model Validation
- 48Testing programmes
- 49Back testing procedure
- 50Sensitivity testing and analysis procedure
- 51Stress testing procedure
- 52Risk factors to stress test
- 53Stress testing total financial resources
- 54Stress testing liquid financial resources
- 55Maintaining sufficient coverage
- 56Review of models using test results
- 57Reverse stress tests
- 58Testing default procedures
- 59Frequency
- 60The time horizons
- 61Information to be publicly disclosed
- 62Entry into force and application
- Annex IConditions applicable to financial instruments, bank guarantees, public guarantees and gold considered as highly liquid collateral
- Annex IIConditions applicable to highly liquid financial instruments
Article 11 — Internal auditing
Financial servicesLevel 2RTSEMIRIn forceIn force on the date shown, by the dates in the Official Journal.VerifiedIdentical to the official source.Official source
1.A CCP shall establish and maintain an internal audit function which is separate and independent from the other functions and activities of the CCP and which has the following tasks:
2.The internal audit function shall have the necessary authority, resources, expertise, and access to all relevant documents for the performance of its functions. It shall be sufficiently independent from the management and shall report directly to the board.
3.Internal audit shall assess the effectiveness of the CCP’s risk management processes and control mechanisms in a manner that is proportionate to the risks faced by the different business lines and independent of the business areas assessed. The internal audit function shall have the necessary access to information in order to review all of the CCP’s activities and operations, processes and systems, including outsourced activities.
4.Internal audit assessments shall be based on a comprehensive audit plan that shall be reviewed and reported to the competent authority at least on an annual basis. The CCP shall ensure that special audits may be performed on an event-driven basis at short notice. Audit planning and review shall be approved by the board.
5.A CCP’s clearing operations, risk management processes, internal control mechanisms and accounts shall be subject to independent audit. Independent audits shall be performed, at a least, on an annual basis.
CHAPTER IV — RECORD KEEPING (Article 29 of Regulation (EU) No 648/2012)
Full document 62 articles and 2 annexes on one page