A/B SIGNATORY OVERVIEW

Overview: 

 

The concept of multiple, or A/B, signatories is intended to provide multi-user institutional accounts with an internal fraud and error control typically employed by these institutions in other operational facets of their business.  This control mechanism requires that multiple individuals provide confirmation of a given request prior to IB acting upon it. Control is accomplished through the three steps outlined below.:

Background: 

 

  1. Defining those functions which require control via a multi-user authorization process.
    1. IB has defined two functions, the creation or modification of additional users and funds management as those which may be controlled via multi-user authorization.
  1. Specifying the number of account users necessary to provide adequate control.
    1. For a given function, up to 3 users, or Authorizers, may be specified as being required to provide approval prior to the processing of a request. 
    2. The number of Authorizers specified logically cannot exceed the number of users associated with the account.
    3. For control purposes (i.e. do not want to allow a given user to circumvent the authorization process by unilaterally making changes), the number of Authorizers can never be decreased only increased.
    4. This process is managed through the Account Administration/Authorizations menu options within Account Management
  1. Delineating levels of authority for each Authorizer.
    1. One of 2 levels of authority, either ‘A’ – high or ‘B’ – low, must be specified for each Authorizer.
    2. For any function requiring control, a minimum number of ‘A’ Authorizers who are required to provide approval before a request can be processed must be specified
    3. The minimum number of ‘A’ Authorizers specified for a particular function cannot logically exceed the number of ‘A’ Authorizers set up for that function.
    4. When the required number of Authorizers that is required to provide approval exceeds the minimum number of ‘A’ Authorizers specified, either ‘A’ or ‘B’ Authorizers are eligible to provide the balance of approval.
    5. This process is managed through the Account Administration/User Access Rights menu options within Account Management
    6. The table below illustrates the authorization scenarios which are possible based upon the set up criteria (# of Authorizers and minimum ‘A’ signatories required) established by the account holder.

 

 

 
POSSIBLE A/B AUTHORIZATION SCENARIOS
# of Authorizers
Specified
Minimum # of ‘A’
Signatories
Specified
# of ‘A’
Signatories Required to Authorize
# of ‘B’
Signatories Required to Authorize
0
0
0
0
1
1
1
0
2
2
2
0
2
1
1 or 2
1 if only 1 ‘A’ has signed, 0 if 2 ‘A’s have signed
3
1
1, 2 or 3
2 if only 1 ‘A’ has signed, 1 if only 2 ‘A’s have signed,0 if 3 ‘A’s have signed
3
2
2 or 3
1 if only 2 ‘A’s have signed, 0 if 3 ‘A’s have signed
3
3
3
0
 

 

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