• Prefunded And Unfunded Contributions To The Default Fund Of A Non - QCCP

    • PRU A4.9.18

      An Authorised Person must calculate Credit RWA for the exposures arising from its contributions to the default fund of a Non-QCCP in accordance with the following formula:

      Credit RWA = (DF + UC) × 10

      where:

      DF = the total prefunded default fund contributions provided by the Authorised Person; and

      UC = the total unfunded default fund contributions which the Non-QCCP may require the Authorised Person to provide.

      The Regulator may determine whether an Authorised Person's unfunded contribution to the default fund should be factored into the imposition of an Individual Capital Requirement under Rule 10.6.