Prudential Regulation Authority Rulebook

1.

Institutions shall assign a 150% risk weight to exposures that are associated with particularly high risks.

2.

For the purposes of this Article, institutions shall treat any of the following exposures as exposures associated with particularly high risks:

1. (a) investments in venture capital firms, except where those investments are treated in accordance with Article 132;
2. (b) investments in private equity, except where those investments are treated in accordance with Article 132;
3. (c) speculative immovable property financing.

3.

When assessing whether an exposure other than exposures referred to in paragraph 2 is associated with particularly high risks, institutions shall take into account the following risk characteristics:

1. (a) there is a high risk of loss as a result of a default of the obligor;
2. (b) it is impossible to assess adequately whether the exposure falls under point (a).

[Note: This rule corresponds to Article 128 of the CRR as it applied immediately before revocation by the Treasury.]

[Note: Articles 129 to 131 remain in the CRR]