chap 7 - advanced

Question 1

comply or explain

Answer 1

1. trademark of corporate code, based on principles and provisions

corporate governance is about what the Board of a company does and how it sets its values of the company. it is distinguised from day to day management of the company.
leadership- division of responsibility - neds

Question 2

in the uk both execs and non execs of brokers must be

Answer 2

• approved persons under FCA regulation

Question 3

uk corporate govenance - accountability

Answer 3

1. board should present balanced assessment of comp
2. board responsible for determining nature of risks in line with strategic objectives, should maintain systems of control
3. transparent arrangements, corporate reporting, over view by auditors

Question 4

risk tolerance

Answer 4

1. unacceptable (most concerning, controls bolox, action required immediately)
2. severe. (concerning, controls in place but may be ineffective, status of risk should be managed continuously.
3. material. (causes unease, action plans should be prepared later if required. controls in place which address causes of the risk
4. controlled (comfortable with the risk, controls sufficient and in place, status of risk should be reviewed from time to time