Operational Audit

ABCD New Zealand Clearing and Depository Corporation Limited 2014 Operational Audit a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.. ABCD New Zealand Clearing and Depository Corporation Contents 1 Executive summary 1 2 Scope of our engagement 2 3 Findings and recommendations 4 3.1 3.2 3.3 Settlement system Compliance monitoring framework Operational capability 4 7 9 4 Prior year recommendations Appendix 1: Risk Ratings 11 141 New Zealand Clearing and Depository Corporation 2014 Operational Audit April 2014 Executive summary Scope As set out in our engagement letter dated  the scope of our engagement was to evaluate certain operating activities of New Zealand Clearing and Depository Corporation (NZClearingCorp) with respect to the: settlement system compliance monitoring framework operational capability.. ABCD 2 New Zealand Clearing and Depository As set out in our engagement letter dated our scope was to evaluate certain operating activities of NZClearingCorp in respect of the: settlement system compliance framework operational capability.. ABCD Procedure New Zealand Clearing and Depository Corporation 2014 Operational Audit Prior year recommendation Status Risk The Risk Capital Policy could be improved by clearly stating the combination of scenarios that should be applied and extending the stress testing across future years (currently only performed