Time Triggered Renewals

What are Time-Triggered Renewals?
Time-triggered renewals are systematic processes designed to update and verify client information at regular intervals based on their assessed risk level. This approach ensures that due diligence remains current and relevant, allowing Saxo to maintain compliance and manage risk effectively.

How do Time-Triggered Renewals Work?
The client's risk classification determines the renewal frequency:

• Low-Risk Clients: These clients undergo renewals every five years. Given their minimal risk profile, this extended interval allows Saxo to allocate resources more efficiently, focusing on clients with higher risk levels.
• Medium-Risk Clients: Renewals occur every three years for these clients. This frequency strikes a balance between maintaining up-to-date information and managing resources, ensuring that any emerging risks are identified in a timely manner.
• High-Risk Clients: Due diligence is renewed every year for high-risk clients. This frequent renewal cycle is crucial for closely monitoring potential risks and ensuring compliance with regulatory requirements.

Why are Time-Triggered Renewals Important?
Time-triggered renewals are essential for several reasons:

1. Risk Management: By tailoring the renewal frequency to the client's risk level, Saxo can focus efforts on higher-risk clients, thereby enhancing overall risk management.
2. Resource Optimisation: This approach allows Saxo to allocate resources more efficiently, reducing unnecessary workload on low-risk clients and concentrating efforts where they are most needed.
3. Regulatory Compliance: Regular updates ensure that client information is accurate and compliant with regulatory standards, minimising the risk of non-compliance and associated penalties.
4. Proactive Monitoring: Frequent renewals for high-risk clients enable proactive identification and mitigation of potential risks, safeguarding Saxo's and the partners' shared interests and reputation.

In summary, time-triggered renewals are a strategic tool that helps Saxo manage risk, optimise resources, and maintain compliance by systematically updating client information based on their risk classification.