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  • Exposure limits

    • IFR 5.4.15 IFR 5.4.15

      An Authorised Person Managing a PSIA, which is an Unrestricted PSIA, must not have an Exposure to a Counterparty, Connected Counterparty, group of Closely Related Counterparties or to a group of Connected Counterparties that exceeds any one of the following percentages of its Capital Resources:

      (a) 25% if financed by its Capital Resources or Unrestricted PSIAs; or
      (b) 40% if financed by an aggregate of its own Capital Resources and Unrestricted PSIAs.
      Amended on (3 February, 2020).

      • Guidance

        In accordance with PRU Rule 4.15.5, the aggregate of an Authorised Person's Exposure to a Counterparty or to a group of Closely Related Counterparties may not exceed 25% of the Authorised Person's Capital Resources.

    • IFR 5.4.16

      The sum of an Authorised Person's non-exempt Large Exposures must not exceed 800% of its Capital Resources for Exposures funded by the Authorised Person's Capital Resources and Unrestricted PSIAs.

    • IFR 5.4.17

      An Authorised Person must:

      (a) monitor and control its Exposures funded by PSIAs, which are Unrestricted PSIAs, on a daily basis to ensure they remain within the concentration risk limits specified in IFR 5.4.15; and
      (b) if a breach occurs, notify the Regulator immediately and confirm it in writing.