PRU 4.15.10

For Exposures to a Financial Institution, or a group of Connected Counterparties one of which is a Financial Institution, the total amount of an Authorised Person's Exposures may exceed 25% of its Capital Resources, provided those institutions are Investment Grade (Credit Quality Grades 1 to 3) and subject to the following:

(a) Exposures to any entities within the group of Connected Counterparties that are not Financial Institutions are limited to 25% of Capital Resources after taking account of CRM;
(b) the Exposures must not form part of the Capital Resources of the Counterparty;
(c) the Counterparty Risk profile must be subject to review on at least an annual basis; and
(d) Exposures of this nature must not in any case exceed a maximum of $100 million or 100% of Capital Resources, whichever is the lower.