(1) Where the exposures of an authorized institution are measured at fair value, for the purposes of calculating the risk-weighted amount of the exposures under Part 4, 5, 6, 7 or 8, the institution must establish and maintain valuation systems, controls and procedures that are effective to ensure that the valuation of its exposures is prudent and reliable.
(2) For the purposes of subsection (1), an authorized institution must make adjustments, where appropriate, to the valuation of its exposures that are measured at fair value to account forˇX

(a) the limitations of the valuation model or methodology and the data used by the institution in the valuation process;
(b) the liquidity of the institutionˇ¦s exposures; and
(c) other relevant factors that might reasonably be expected to affect the prudence and reliability of the valuation of the institutionˇ¦s exposures.