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Application provision

1.1 This Part applies to every firm that is a CRR firm.

4.1

01/01/2014

A firm may only use the NCLEG non-trading book exemption, the NCLEG trading book exemption or the sovereign large exposures exemption where it can demonstrate to the PRA that the following conditions are met:

  1. (1) the specific nature of the exposure, the counterparty or the relationship between the firm and the counterparty eliminate or reduce the risk of the exposure; and
  2. (2) any remaining concentration risk can be addressed by other equally effective means such as the arrangements, processes and mechanisms provided for in Article 81 of CRD.

Additional Notes


[Note: Art 400(3) of the CRR]