Reset to Today

To access the FCA Handbook Archive choose a date between 1 January 2001 and 31 December 2004.

Content Options

Content Options

View Options

You are viewing the version of the document as on 2022-01-01.

Timeline guidance

Alternative versions

  1. Point in time

MIFIDPRU 5.2 Monitoring obligation


1A firm must monitor and control its concentration risk using sound administrative and accounting procedures and robust internal control mechanisms.


1MIFIDPRU 5.2.1R requires a firm to monitor and control all sources of concentration risk. This is not limited to trading book exposures, but also includes any concentration in assets not recorded in a trading book (for example, trade debts) and off-balance sheet items. It also includes any concentration risk that may arise from the following:

  1. (1)

    the location of client money;

  2. (2)

    the location of custody assets;

  3. (3)

    a firm’s own cash deposits; and

  4. (4)