8. As part of their procedures for marking-to-market, Authorised Persons should establish and maintain procedures for considering valuation adjustments. The Regulator expects Authorised Persons using third-party valuations to consider whether valuation adjustments are necessary. Such considerations are also necessary when marking-to-model.
9. The Regulator expects the following valuation adjustments to be formally considered at a minimum: unearned credit spreads, close-out costs, Operational Risks, early termination, investing and funding costs, and future administrative costs and, where appropriate, model risk.