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Article 4
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A securities firm using modelling in management operations shall establish self-assessment mechanisms that meet the following requirements and incorporate such mechanisms in the procedures for internal control for management purposes:
- The risk management unit shall regularly conduct self-assessments of the various management operations that use modelling to ensure that the calculation of the capital adequacy ratio and other legally required ratios are accurate, effective, and reliable.
- For the self-assessment operations mentioned above, working papers shall be produced and kept along with the self-assessment reports and related information for at least five years.
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