Guidance

1. This Chapter deals with management of Liquidity Risk by an Authorised Person. Liquidity Risk refers to the risk of potential losses incurred by an Authorised Person's failure to have liquid assets to ensure payment of all its liabilities as they fall due and be in a position to meet all payments required to sustain its business on a planned growth path.
2. This Chapter requires an Authorised Person to:
a. implement Liquidity Risk management systems and controls;
b. identify, measure and monitor Liquidity Risk;
c. maintain a minimum level of HQLA; and
d. determine quantitative limits on cumulative negative Maturity Mismatch in accordance with a specified methodology.