2.1.1 Governing Body’s responsibilities

(1) An Authorised Firm's Governing Body must consider whether the minimum Capital Resources and professional indemnity insurance required by these PRU(INT) Rules are adequate to ensure that there is no significant risk that the firm’s liabilities cannot be met as they fall due. The firm must obtain additional Capital Resources and professional indemnity insurance if its Governing Body considers that the minimum required does not adequately reflect the risks of its business.

(2) The Governing Body is also responsible for:

1. (a) ensuring that the management of the firm’s financial resources (including the firm's Capital Resources, liquid assets and professional indemnity insurance) is part of the firm’s overall risk management, and is aligned with the nature, scale and complexity of its business and its risk profile;
2. (b) ensuring that the firm complies with these PRU(INT) Rules; and
3. (c) monitoring the adequacy and appropriateness of the firm’s systems and controls and the firm’s compliance with them.

2.1.2 Systems and controls

(1) An Authorised Firm must have adequate systems and controls to enable it to calculate and monitor its Capital Resources, liquid assets and professional indemnity insurance, and its compliance with the requirements of these PRU(INT) Rules.

(2) The systems and controls must be in writing and must be appropriate for the nature, scale and complexity of the firm’s business and its risk profile.

(3) The systems and controls must enable the firm to demonstrate its compliance with these PRU(INT) Rules at all times.

(4) The systems and controls must enable the firm to manage its Capital Resources, liquid assets and professional indemnity insurance in anticipation of events or changes in market conditions.