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Application provision

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

27.1

01/01/2016

In accordance with 27.2, where there is exposure to a counterparty of the type mentioned in 29.1(3)(b), 40% of the business amount must be deducted from the aggregate of such exposures. The amount so arrived at is the excess concentration with a number of counterparties. Where this amount is negative, it must be taken to be zero.

27.2

01/01/2016

For the purposes of this Chapter:

  1. (1) exposure to a counterparty must be taken into account only up to the level of the permitted counterparty exposure limit for that counterparty;
  2. (2) exposure to a counterparty must not be taken into account if it does not exceed 5% of the business amount; and
  3. (3) exposure to a counterparty must not be taken into account if the corresponding permitted counterparty exposure limit does not exceed 5% of the business amount.