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Application provision

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



The permitted counterparty exposure limits are as follows:

  1. (1) where the counterparty is an individual or an unincorporated body of persons, 5% of the business amount;
  2. (2) where the counterparty is a counterparty of the type mentioned in (5) in the definition of counterparty, 5% of the business amount;
  3. (3) where the counterparty is a body corporate or group, each of:
    1. (a) 20% of the business amount or £2 million, whichever is the larger;
    2. (b) 10% of the business amount where the exposure arises otherwise than by reason that debts are due, or are to become due, as a result of short term deposits made with an CRD credit institution; and
    3. (c) 5% of the business amount where the exposure is to bodies which are not approved counterparties.