PRU 9.2.1

(1) An Authorised Person must establish and maintain a Liquidity Risk policy which is in writing and is approved at least annually by its Governing Body.
(2) The policy must set out the level of Liquidity Risk the Authorised Person is willing to tolerate and include the strategy for the daily and long-term management of Liquidity Risk appropriate to the nature, scale and complexity of the activities conducted and the strategy must include the matters referred to in (3), (4), and (5).
(3) The strategy must include a system for identifying and assessing Liquidity Risk in accordance with Rule 9.2.4.
(4) The strategy must include a process for the measurement and monitoring of Liquidity Risk using a robust and consistent method which enables the Authorised Person to implement the requirements set out in Rule 9.2.5.
(5) The strategy must include a system for controlling Liquidity Risk which enables the Authorised Person to implement the requirements set out in Rule 9.2.6.
(6) An Authorised Person must ensure that it has risk management systems to implement the policy.