A group with entities in several jurisdictions does not have one liquidity policy — it has as many as it has legal structures, unless someone writes a common one. The purpose of a group policy is not to centralise decisions, but to set consistent rules for reserves, buffers and intercompany funding across entities that cannot always share cash.

Set the principles first

Start with what must hold everywhere: how much of a reserve each entity keeps, how buffers are sized, and on what basis intercompany funding is provided and repaid. Keep the principles few and clear. Rules that cannot be applied consistently across jurisdictions become local improvisation, which is what the policy was meant to prevent.

Size buffers to flows, not habit

Buffers should track the corridors an entity actually uses and the cut-offs it faces, not a fixed multiple of everything. Where offsetting flows between entities can be netted before they leave, a smaller prefunded balance supports the same volume. This is where a common structure pays off: internal FX settles what entities already hold, and only the net remainder is routed externally along the best available path.

Keep entities separate but visible

A policy can consolidate economically without merging legal risk. In SUPA's structure each business unit sits in a segregated portfolio — its assets answer only to its own liabilities, with no cross-recourse. Treasury gets one view; the law still sees distinct entities. Rules on reliance, limits and approvals carry the governance, with over-limit operations becoming human approval requests and every entry traceable to a principal, an agent and a policy version. SUPA is not a bank and does not hold client money in its own name before a banking licence. This is general information, not legal, tax or financial advice.

In short

  • One group needs one set of principles, applied locally.
  • Size buffers to real corridors and cut-offs, not to habit.
  • Netting lets separate entities share liquidity economically.
  • Governance depends on clear limits and an audit trail.

See the structure a group policy could run on → /institutions/