IFR 5.4.7

(a) In this IFR 5:
(i) "E" represents the Exposure determined by an Authorised Person as applicable to an Islamic Contract; and
(ii) "CRW" represents the risk weighting or capital charge assessed by an Authorised Person as appropriate to that Islamic Contract.
(b) Where an Islamic Contract is in the Non-Trading Book, an Authorised Person must determine the PSIACOMcredit for that contract by applying the following formula:
PSIACOMcredit = E x CRW x 10%.
(c) Where an Islamic Contract is in the Trading Book, an Authorised Person must determine the PSIACOMcredit for that contract in accordance with the methodology in PRU Rules A4.7 and A4.8 as appropriate.
(d) An Authorised Person must calculate its PSIACOMcredit of all contracts by:
(i) identifying all Islamic Contracts to which this section applies;
(ii) valuing the underlying investment or asset of each Islamic Contract and reducing the value of any such investment or asset in the manner stipulated in Rule 4.9of PRU, the result of which constitutes "E" for that Islamic Contract;
(iii) determining the risk weighting or capital charge appropriate to each contract, which will constitute the CRW for that contract in accordance with PRU Rules 4.10, 4.11 and 4.12;
(iv) applying the respective formula in IFR 5.4.7(b) or (c) to determine of PSIACOMcredit in respect of each contract; and
(v) summing the PSIACOMcredit of each contract to determine the PSIACOMcredit applicable to the Authorised Person.