• The concentration test

    • PRU A6.3.22 PRU A6.3.22

      An Authorised Person must apply either the standard method or simplified method to an equity position, except that where an individual net position exceeds 20% of the sum of the long and short positions (ignoring the sign) of its country portfolio, the simplified method must be applied to the excess.

      • Guidance

        The part of the individual net position that does not exceed 20% may be treated under the simplified or standard method.