PRU A2.1.7

An Authorised Person in Category 1 or 5 which has assumed a position in order to hedge partially or totally against the adverse effect of the exchange rate on its Capital Resources, in respect of an asset or any other item, may exclude such a position from the calculation of its net open foreign exchange positions subject to the following:

(a) the position is of a non-dealing nature;
(b) the position does no more than protect the Capital Resources of the Authorised Person; and
(c) any exclusion of the position is applied consistently, with the treatment of the hedge remaining the same for the life of the asset or other item.