4
Conditions for the Non-Core Large Exposures Group Exemption and the Sovereign Large Exposures Exemption
4.1
A firm may only use the NCLEG non-trading book exemption, the NCLEG trading book exemption or the sovereign large exposures exemption where it can demonstrate to the PRA that the following conditions are met:
- (1) the specific nature of the exposure, the counterparty or the relationship between the firm and the counterparty eliminate or reduce the risk of the exposure; and
- (2) any remaining concentration risk can be addressed by other equally effective means such as the arrangements, processes and mechanisms provided for in Article 81 of CRD.
[Note: Art 400(3) of the CRR]
- 01/01/2014