What risk management, record keeping and reporting policies are required to make merchant banking investments?

CFR · 2024-01-01 · US · Title 12

(a) (i) Monitor and assess the carrying value, market value and performance of each investment and the aggregate portfolio; (ii) Identify and manage the market, credit, concentration and other risks associated with such investments; (iii) Identify, monitor and assess the terms, amounts and risks arising from transactions and relationships (including contingent fees or contingent interests) with each company in which the financial holding company holds an interest under this subpart; (iv) Ensure the maintenance of corporate separateness between the financial holding company and each company in which the financial holding company holds an interest under this subpart and protect the financial holding company and its depository institution subsidiaries from legal liability for the operations conducted and financial obligations of each such company; and (v) Ensure compliance with this part and any other provisions of law governing transactions and relationships with companies in which the financial holding company holds an interest under this subpart ( (2) (b) (c) (2) (3)

official document · source cfr-2024 · id 12:§ 225.175