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In assessing whether an investment firm licensee'sG close linksG may prevent the effective supervision of the firm, or otherwise poses no undue risks to the investment firm licenseeG , the CBB takes into account the following:

(a) Whether the CBB will receive adequate information from the investment firm licenseeG , and those with whom the licenseeG has close linksG , to enable it to determine whether the licenseeG is complying with CBB requirements;
(b) The structure and geographical spread of the licenseeG , its group and other undertakings with which it has close linksG , and whether this might hinder the provision of adequate and reliable flows of information to the CBB, for instance because of operations in territories which restrict the free flow of information for supervisory purposes;
(c) In the case of an overseas investment firm licenseeG , whether the investment firm licenseeG and its group will be subject to supervision on a consolidated basis (for example, if a financial resources requirement is determined for the group as a whole); and
(d) Whether it is possible to assess with confidence the overall financial position of the group at any particular time, and whether there are factors that might hinder this, such as group members having different financial year ends or auditors, or the corporate structure being unnecessarily complex and opaque.
Amended: July 2007
(2 Versions)
Up to Jun 30 2007Jul 1 2007 onwards
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