Regular Approval
The “Add-on” Flag for a given Violation/Excess approval indicates a Portfolio Manager has exercised their privilege to approve a violation without having request approval from the Credit Manager because the size of the Violation/Excess’ “Highest Excess Amount” is within a given PM’s allocated threshold.
A Portfolio Manager will be able to categorize a given violation approval as being approved as part of an “Add-on” process that exists for Portfolio Managers.
There will be a report that summarizes violations that have been flagged as being a part of the “Add-on” process that exists for Portfolio Managers.
When a Portfolio Manager (PM) / Credit Manager (CM) does not confirm the pre-transaction approval of a violation, the Trader is directed to unwind the trade. Where the PM/CM has not conveyed an authorization for the violation and the trade is not unwound, an IPA flag on the violation is set to ‘YES’ in the system.
For the violation process and for an Approval transition, it will be possible for Portfolio Managers to set an “IPA flag” to “YES”.
Setting an IPA Flag to “YES” will notify the Trader of the associated deal.
There will be a period report which includes all instances of an IPA Flag being set to “YES”.
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