Who will watch the watchers? When it comes to Treasury Middle Office or Banking Middle Office review, the regulatory requirement is an annual external review and independent audit of the Middle Office function to ensure that any identified gaps are clearly highlighted and rectified.
The links that follow present the format for this external validation exercise including the draft of a sample Middle Office audit report that follows the BIS supervisory review framework for Middle Office gap analysis and audit.
Middle Office Review: Sample middle office gap analysis report
Middle Office Review: Sample Middle Office Assessment and review report
Middle Office Review: Middle Office model Basel II Gap Analysis
Middle Office Review: Middle Office Target state vs. Middle Office current state analysis
The Derivative Middle Office: Middle Office Derivatives Business Regulations
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