{"kind":"expression","expression":{"expr_id":"285","doc_id":"285","label":"SL 32 of 2006","is_as_enacted":"t","commenced_on":null,"superseded_on":null,"valid_from":null,"valid_to":null,"is_current":"t","incorporating":null,"akn_expr_iri":"\/akn\/ky\/act\/sl\/2006\/32\/eng@2006-01-01","akn_envelope":"{\"_canary\": {\"iri\": {\"work\": \"\/akn\/ky\/act\/sl\/2006\/32\", \"expression\": \"\/akn\/ky\/act\/sl\/2006\/32\/eng@2006-01-01\", \"manifestation\": \"\/akn\/ky\/act\/sl\/2006\/32\/eng@2006-01-01.pdf\"}, \"pdf\": {\"md5\": \"f73aa241ceb4f2310160c13260c687b0\", \"path\": \"\/Users\/q\/kyleg-data\/working\/SUBORDINATE\/2006\/2006-0032\/2006-0032_SL 32 of 2006.pdf\", \"pages\": 2, \"filename\": \"2006-0032_SL 32 of 2006.pdf\"}, \"errors\": [], \"extraction\": {\"model\": null, \"stats\": {\"word_count\": 377, \"paragraph_count\": 6, \"text_char_count\": 2481}, \"usage\": null, \"method\": \"pymupdf-text\", \"version\": \"kyleg-akn-1.0\", \"extracted_at\": \"2026-06-22\"}, \"classification\": \"text_layer\", \"validation_flags\": [], \"docai_processor_id\": null}, \"akomaNtoso\": {\"act\": {\"body\": [{\"eId\": \"sec_n1\", \"num\": null, \"text\": \"November 2006 Page 1 of 2 Rule on Investments, Securities, and Rule on Investments, Securities, and Rule on Investments, Securities, and Rule on Investments, Securities, and Derivatives Derivatives Derivatives Derivatives Risk Risk Risk Risk Management Management Management Management for for for for Banks Banks Banks Banks\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_1\", \"num\": \"1.\", \"text\": \"1. 1. 1. STATEMENT OF TATEMENT OF TATEMENT OF TATEMENT OF OBJECTIVES BJECTIVES BJECTIVES BJECTIVES To set out the Cayman Islands Monetary Authority (\u201cAuthority\u2019s\u201d)  rule on Investments, Securities, and Derivatives Risk Management for banks, (each of the sub-paragraphs of section 4 below referred to as a \u201cRule,\u201d and collectively, the \u201cRules\u201d), pursuant to the Monetary Authority Law (2004 Revision) (\u201cMAL\u201d).\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_2\", \"num\": \"2.\", \"text\": \"2. 2. 2. INTRODUCTIO NTRODUCTIO NTRODUCTIO NTRODUCTION 2.1. Section 34 of the MAL provides that the Authority may issue rules: 34. 34. 34. 34.  (1) (1) (1) (1) After private sector consultation and with the approval of the Governor, the Authority may \u2013 (a)  issue or amend rules or statements of principle or guidance concerning the conduct of licensees and their officers and employees; [and] \u2026 2.2. This document establishes the Rule on Investments, Securities, and Derivatives and Rule should be read in conjunction with the Statement of Guidance on Investments, Securities and Derivatives. November 2006 Page 2 of 2\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_3\", \"num\": \"3.\", \"text\": \"3. 3. 3. SCOPE OF COPE OF COPE OF COPE OF APPLICATION PPLICATION PPLICATION PPLICATION This rule applies to all banks regulated by the Authority under the Banks and Trust Companies Law (2003 Revision).\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_4\", \"num\": \"4.\", \"text\": \"4. 4. 4. RULES ULES ULES ULES 4.1. A bank must establish, implement, and maintain strategies, policies, and procedures for investments, securities, and derivatives risk management appropriate for the size, complexity, and nature of its activities that create an appropriate investment management process. 4.2. Such strategies, policies, and procedures must be approved by the bank\u2019s board of directors. 4.3. A bank must take the necessary steps to measure, monitor, and control the risks associated with investments, securities, and derivatives business.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_5\", \"num\": \"5.\", \"text\": \"5. 5. 5. ENFORCEMENT NFORCEMENT NFORCEMENT NFORCEMENT Whenever there has been a breach of the Rules, the Authority\u2019s policies and procedures as contained in its Enforcement Manual will apply, in addition to any other powers provided in the Banks and Trust Companies Law (2003 Revision) and the Monetary Authority Law (2004 Revision).\", \"element\": \"section\", \"heading\": null}], \"meta\": {\"notes\": null, \"workflow\": null, \"lifecycle\": {\"source\": \"#cilegis\", \"eventRef\": [{\"eId\": \"e_commence_2006_01_01\", \"date\": \"2006-01-01\", \"type\": \"generation\", \"source\": \"#cilegis\"}]}, \"references\": {\"source\": \"#canary\", \"TLCRole\": [], \"TLCEvent\": [{\"eId\": \"ev_commencement\", \"href\": \"\/akn\/ontology\/canary\/event\/commencement\", \"showAs\": \"commencement\"}], \"TLCPerson\": [], \"TLCConcept\": [{\"eId\": \"inForce\", \"href\": \"\/akn\/ontology\/canary\/concept\/temporal\/in-force\", \"showAs\": \"in force\"}], \"TLCProcess\": [], \"TLCLocation\": [], \"TLCOrganization\": [{\"eId\": \"cilegis\", \"href\": \"\/akn\/ontology\/canary\/organization\/editor\/cilegis\", \"showAs\": \"Cayman Islands legislation mirror (kyleg)\"}]}, \"temporalData\": {\"source\": \"#cilegis\", \"temporalGroup\": [{\"eId\": \"tg_inforce_2006_01_01\", \"timeInterval\": [{\"end\": null, \"start\": \"#e_commence_2006_01_01\", \"duration\": null, \"refersTo\": \"#inForce\"}]}]}, \"classification\": null, \"identification\": {\"source\": \"#cilegis\", \"FRBRWork\": {\"FRBRuri\": \"\/akn\/ky\/act\/sl\/2006\/32\", \"FRBRdate\": [{\"date\": \"2006-01-01\", \"name\": \"generation\"}], \"FRBRthis\": \"\/akn\/ky\/act\/sl\/2006\/32\/!main\", \"FRBRalias\": [{\"name\": \"cmsId\", \"value\": \"2006-0032\"}], \"FRBRauthor\": [{\"as\": \"#editor\", \"href\": \"\/akn\/ontology\/canary\/organization\/editor\/cilegis\"}], \"FRBRnumber\": \"32 of 2006\", \"FRBRcountry\": \"ky\", \"FRBRsubtype\": \"subordinate\"}, \"FRBRExpression\": {\"FRBRuri\": \"\/akn\/ky\/act\/sl\/2006\/32\/eng@2006-01-01\", \"FRBRdate\": [{\"date\": \"2006-01-01\", \"name\": \"generation\"}], \"FRBRthis\": \"\/akn\/ky\/act\/sl\/2006\/32\/eng@2006-01-01\/!main\", \"FRBRauthor\": [{\"as\": \"#editor\", \"href\": \"\/akn\/ontology\/canary\/organization\/editor\/cilegis\"}], \"FRBRlanguage\": \"eng\"}, \"FRBRManifestation\": {\"FRBRuri\": \"\/akn\/ky\/act\/sl\/2006\/32\/eng@2006-01-01.xml\", \"FRBRdate\": [{\"date\": \"2026-06-22\", \"name\": \"generation\"}], \"FRBRthis\": \"\/akn\/ky\/act\/sl\/2006\/32\/eng@2006-01-01.xml\", \"FRBRauthor\": [{\"as\": \"#editor\", \"href\": \"\/akn\/ontology\/canary\/organization\/editor\/cilegis\"}], \"FRBRformat\": \"application\/xml\"}}}, \"name\": \"act\", \"header\": {\"title\": \"Rule \u2013 On Investments, Securities, Derivatives Risk Management for Banks\", \"actNumber\": \"32 of 2006\", \"longTitle\": null}}, \"doc\": null, \"bill\": null, \"judgment\": null}}","akn_full_text":"November 2006\n\nPage 1 of 2\n\nRule on Investments, Securities, and\nRule on Investments, Securities, and\nRule on Investments, Securities, and\nRule on Investments, Securities, and\nDerivatives\nDerivatives\nDerivatives\nDerivatives Risk\n Risk\n Risk\n Risk Management\nManagement\nManagement\nManagement\nfor\nfor\nfor\nfor Banks\nBanks\nBanks\nBanks\n\n1.\n1.\n1.\n1.\nSTATEMENT OF\nTATEMENT OF\nTATEMENT OF\nTATEMENT OF OBJECTIVES\nBJECTIVES\nBJECTIVES\nBJECTIVES\n\nTo set out the Cayman Islands Monetary Authority (\u201cAuthority\u2019s\u201d)  rule on\nInvestments, Securities, and Derivatives Risk Management for banks,\n(each of the sub-paragraphs of section 4 below referred to as a \u201cRule,\u201d\nand collectively, the \u201cRules\u201d), pursuant to the Monetary Authority Law\n(2004 Revision) (\u201cMAL\u201d).\n\n2.\n2.\n2.\n2.\nINTRODUCTIO\nNTRODUCTIO\nNTRODUCTIO\nNTRODUCTION\n\n2.1. Section 34 of the MAL provides that the Authority may issue rules:\n\n34.\n34.\n34.\n34.  (1)\n(1)\n(1)\n(1) After private sector consultation and with the approval of\nthe Governor, the Authority may \u2013\n\n(a)  issue or amend rules or statements of principle or\nguidance concerning the conduct of licensees and their\nofficers and employees; [and]\n\u2026\n\n2.2. This document establishes the Rule on Investments, Securities, and\nDerivatives and Rule should be read in conjunction with the\nStatement of Guidance on Investments, Securities and Derivatives.\n\nNovember 2006\n\nPage 2 of 2\n\n3.\n3.\n3.\n3.\nSCOPE OF\nCOPE OF\nCOPE OF\nCOPE OF APPLICATION\nPPLICATION\nPPLICATION\nPPLICATION\n\nThis rule applies to all banks regulated by the Authority under the Banks\nand Trust Companies Law (2003 Revision).\n\n4.\n4.\n4.\n4.\nRULES\nULES\nULES\nULES\n\n4.1. A bank must establish, implement, and maintain strategies,\npolicies, and procedures for investments, securities, and\nderivatives risk management appropriate for the size,\ncomplexity, and nature of its activities that create an\nappropriate investment management process.\n\n4.2. Such strategies, policies, and procedures must be approved by\nthe bank\u2019s board of directors.\n\n4.3. A bank must take the necessary steps to measure, monitor,\nand control the risks associated with investments, securities,\nand derivatives business.\n\n5.\n5.\n5.\n5.\nENFORCEMENT\nNFORCEMENT\nNFORCEMENT\nNFORCEMENT\nWhenever there has been a breach of the Rules, the Authority\u2019s policies\nand procedures as contained in its Enforcement Manual will apply, in\naddition to any other powers provided in the Banks and Trust Companies\nLaw (2003 Revision) and the Monetary Authority Law (2004 Revision).","akn_extracted_at":"2026-06-22 15:40:05.767983+00","cms_id":"2006-0032","law_type":"subordinate","year":"2006","number":"32","title":"Rule \u2013 On Investments, Securities, Derivatives Risk Management for Banks","status":"in_force"},"provenance":{"files":[{"file_id":"5180","expr_id":"285","kind":"akn_xml","filename":"2006-0032_SL 32 of 2006.akn.xml","source_url":null,"storage_path":"\/Users\/q\/kyleg-data\/working\/SUBORDINATE\/2006\/2006-0032\/2006-0032_SL 32 of 2006.akn.xml","content_md5":"4e9a1eb61c3e65dbe7f127cd8a53b96f","byte_size":"5692","http_last_modified":null,"fetched_at":"2026-06-22 15:40:05.784364+00"},{"file_id":"569","expr_id":"285","kind":"pristine_pdf","filename":"2006-0032_SL 32 of 2006.pdf","source_url":"\/cms\/images\/LEGISLATION\/SUBORDINATE\/2006\/2006-0032\/2006-0032_SL 32 of 2006.pdf","storage_path":"\/Users\/q\/kyleg-data\/pristine\/SUBORDINATE\/2006\/2006-0032\/2006-0032_SL 32 of 2006.pdf","content_md5":"f73aa241ceb4f2310160c13260c687b0","byte_size":"23693","http_last_modified":null,"fetched_at":"2026-06-21 23:09:36.319415+00"},{"file_id":"570","expr_id":"285","kind":"working_pdf","filename":"2006-0032_SL 32 of 2006.pdf","source_url":"\/cms\/images\/LEGISLATION\/SUBORDINATE\/2006\/2006-0032\/2006-0032_SL 32 of 2006.pdf","storage_path":"\/Users\/q\/kyleg-data\/working\/SUBORDINATE\/2006\/2006-0032\/2006-0032_SL 32 of 2006.pdf","content_md5":"f73aa241ceb4f2310160c13260c687b0","byte_size":"23693","http_last_modified":null,"fetched_at":"2026-06-21 23:09:36.319415+00"}],"paragraph_count":2,"latest_history":null},"quality":{"expr_id":"285","doc_id":"285","quality_state":"known_issue","quality_score":"30","needs_human_review":"t","deterministic_categories":"{duplicate_text,page_header_footer_noise,title_mismatch}","llm_categories":"{duplicate_text,paragraph_numbering_problem}","repair_actions":"{collapse_duplicate_text,rebuild_paragraphs,strip_page_furniture,verify_title_metadata}","finding_severity_counts":"{\"high\": 1, \"medium\": 1}","finding_summary":"Extraction contains significant duplication and formatting anomalies requiring review.","assessed_at":"2026-06-22 15:29:46.096955+00","updated_at":"2026-06-22 15:29:46.096955+00"}}