Commercial Real Estate Asset Class
Authorised Firmmust apply a 100% risk weight to any CR Exposurein the commercial real estate asset class.
Authorised Firmmust apply a risk weight of 150% to Exposures, including Exposuresin the form of Sharesor Unitsin a Collective Investment Fund, that are associated with particularly high risks.
For the purposes of PIB Rule 4.12.19,
Exposureswith particularly high risks must include the following investments:(a) investments in venture capital funds(b) investments in hedge funds or alternative investment funds, including but not limited to private equity funds;(c) speculative immovable property financing; and(d) any investments declared by the DFSAto constitute high risk for the purpose of this Rule.
When assessing whether an
Exposureother than Exposuresreferred to in PIB Rule 4.12.20 is associated with particularly high risks, an Authorised Firmmust take into account the following risk characteristics:(a) there is a high risk of loss as a result of a default of the obligor; and(b) it is impossible to assess adequately whether the Exposurefalls under (a).