BANK 4.8.4 Role of governing body — related parties

(1) A banking business firm’s governing body must ensure that the firm’s policies relating to related-party transactions are complied with and that any exceptions are reported to the appropriate level of the senior management, and, if necessary, to the governing body.
(2) The governing body must also ensure that the firm’s senior management monitors transactions with related parties, takes appropriate steps to control or mitigate the risks from such transactions and writes off exposures to related parties only in accordance with the firm’s policies.
(3) The governing body must approve transactions with related parties, and the write-off of related-party exposures, if such transactions or write-off exceeds specified amounts or otherwise poses any special risk.
Derived from QFCRA RM/2014-2 (as from 1st January 2015).