Part

Insurance Company – Exposure Limits

Chapter

Large Exposure Limits

Printed on: 29/04/2024

Rulebook at: 01/01/2016

6

Large Exposure Limits

6.1

This Chapter does not apply to:

  1. (1) a reinsurance exposure; or
  2. (2) a counterparty exposure or asset exposure to an CRD credit institution.
  • 01/01/2016

6.2

A firm must take reasonable steps to limit its counterparty exposure or asset exposure to:

  1. (1) a single counterparty;
  2. (2) each of the counterparties within a group of closely related counterparties; and
  3. (3) an asset or class of identical assets;

to a level where, if a total default were to occur, the firm would not become unable to meet its liabilities as they fall due.

  • 01/01/2016