Close menu

Application provision

1.1 Unless otherwise stated, this Part applies to a non-directive friendly society.



The amount by which a firm is exposed to a counterparty in excess of the permitted counterparty exposure limit must be calculated by subtracting from the amount of the exposure to such counterparty the amount of the permitted counterparty exposure limit for such counterparty. If the figure arrived at is negative, it must be taken to be zero. If the firm is exposed to a counterparty in excess of the permitted counterparty exposure limit in more than one of the circumstances set out in 29(1), it must make the deduction required under 17.2(2) only in respect of the circumstances leading to the greatest excess exposure.