Article 396 Compliance with Large Exposures Requirements
1.
If, in an exceptional case, exposures exceed the limit set out in Article 395(1), the institution shall report the value of the exposure without delay to the competent authority which may, where the circumstances warrant it, allow the institution a limited period of time in which to comply with the limit.
[Note: This is a permission under section 144G and 192XC of FSMA to which Part 8 of the Capital Requirements Regulations applies]
Where the amount of GBP 130 million referred to in Article 395(1) is applicable, the competent authority may allow the 100% limit in terms of the institution's Tier 1 capital to be exceeded on a case-by-case basis.
[Note: This is a permission under section 144G and 192XC of FSMA to which Part 8 of the Capital Requirements Regulations applies]
Where, in the exceptional cases referred to in the first and second subparagraph of this paragraph, a competent authority allows an institution to exceed the limit set out in Article 395(1) for a period longer than three months, the institution shall present a satisfactory plan for a timely return to compliance with that limit and shall carry out that plan within the period agreed with the competent authority.
- 01/01/2022
2.
Where compliance by an institution on an individual or sub-consolidated basis with the obligations imposed in this Part is waived under Article 7(1), or the provisions of Article 9 are applied in the case of parent institutions, measures shall be taken to ensure the satisfactory allocation of risks within the group.
[Note: This rule corresponds to Article 396 of the CRR as it applied immediately before revocation by the Treasury.]
- 01/01/2022