Page:United States Statutes at Large Volume 122.djvu/2696

 12 2 STA T . 2 673PUBLIC LA W 11 0– 2 89—J UL Y 30, 2008 ‘ ‘ SEC.13 13 B. PRUD E NTIALM ANA G EMENT AND O PERATIONS STAND - ARDS. ‘ ‘ (a)STAND A R D S.—TheDir e cto r s ha l l esta b lish sta nd ards , b y re gu lation or guideline, f or each regulated entity relating to— ‘‘( 1 ) ade q uacy of internal controls and infor m ation systems ta k ing into account the nature and scale of business o p erations ‘‘( 2 ) independence and adequacy of internal audit systems; ‘‘( 3 ) management of interest rate risk e x posure; ‘‘( 4 ) management of market risk, including standards that pro v ide for systems that accurately measure, monitor, and con - trol market risks and, as w arranted, that establish limitations on market risk; ‘‘( 5 ) adequacy and maintenance of liquidity and reserves; ‘‘( 6 ) management of asset and investment portfolio growth; ‘‘( 7 ) investments and acquisitions of assets by a regulated entity, to ensure that they are consistent with the purposes of this title and the authori z ing statutes; ‘‘( 8 ) overall risk management processes, including adequacy of oversight by senior management and the board of directors and of processes and policies to identify, measure, monitor, and control material risks, including reputational risks, and for adequate, well-tested business resumption plans for all ma j or systems with remote site facilities to protect against disruptive events; ‘‘( 9 ) management of credit and counterparty risk, including systems to identify concentrations of credit risk and prudential limits to restrict exposure of the regulated entity to a single counterparty or groups of related counterparties; ‘‘(1 0 ) maintenance of adequate records, in accordance with consistent accounting policies and practices that enable the Director to evaluate the financial condition of the regulated entity; and ‘‘(11) such other operational and management standards as the Director determines to be appropriate. ‘‘(b) F A ILU R E T OM EET STANDARDS.— ‘‘(1) P LAN RE Q UIRE M ENT.— ‘‘( A ) I N G ENERAL.—If the Director determines that a regulated entity fails to meet any standard established under subsection (a)— ‘‘(i) if such standard is established by regulation, the Director shall require the regulated entity to submit an acceptable plan to the Director within the time allowed under subparagraph ( C ); and ‘‘(ii) if such standard is established by guideline, the Director may require the regulated entity to submit a plan described in clause (i). ‘‘( B ) CONTENTS.—Any plan required under subpara- graph (A) shall specify the actions that the regulated entity will take to correct the deficiency. If the regulated entity is undercapitalized, the plan may be a part of the capital restoration plan for the regulated entity under section 1369C. ‘‘(C) DEADLINES F OR SU B MISSION AND RE V IE W .—The Director shall by regulation establish deadlines that— ‘‘(i) provide the regulated entities with reasonable time to submit plans required under subparagraph (A), and generally require a regulated entity to submit Regulations. Regulations. G ui d elines. 12USC45 1 3b .

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