Investment management.

CFR · 2024-01-01 · US · Title 12

(a) (b) (c) (1) (i) (ii) (iii) (iv) (2) (3) (ii) (4) (d) (e) (1) Establish appropriate internal controls to detect and prevent loss, fraud, embezzlement, conflicts of interest, and unauthorized investments. (2) Establish and maintain a separation of duties between personnel who supervise or execute investment transactions and personnel who supervise or engage in all other investment-related functions. (3) Maintain records and management information systems that are appropriate for the level and complexity of the institution's investment activities. (4) Implement an effective internal audit program to review, at least annually, the investment management practices including internal controls, reporting processes, and compliance with FCA regulations. This annual review's scope must be appropriate for the size, risk and complexity of the investment portfolio. (f) (2) (3) (i) Investments that are fully guaranteed as to the timely payment of principal and interest by a U.S. Government agency; (ii) Investments that are fully and explicitly guaranteed as to the timely payment of principal and interest by a GSE, except that no more than 50 percent of the investment portfolio may be comprised of GSE MBS. Investments in Farmer Mac securities are governed (iii) Money market instruments identified in § 615.5131. (g) (h) (ii) (iii) (2) (3) (4) (ii) The institution's stress tests must be defined in a board-approved policy and must include defined parameters for the security types purchased.

official document · source cfr-2024 · id 12:§ 615.5133