PIB 4.15.10 PIB 4.15.10
(1) This Rule applies to an Authorised Firm in Category 2 and 3A.
Exposuresto a Financial Institution, or a group of Connected Counterpartiesone of which is a Financial Institution, the total amount of an Authorised Firm's Exposuresmay exceed 25% of its Tier 1 Capital, provided those institutions are Investment Grade (Credit Quality Grades1 to 3) and subject to the following:(a) Exposuresto any entities within the group of Connected Counterpartiesthat are not Financial Institutionsare limited to 25% of Tier 1 Capital after taking account of Credit Riskmitigation;(b) the Exposuresmust not form part of the Tier 1 Capital of the Counterparty;(c) the Counterparty Riskprofile must be subject to review on at least an annual basis; and(d) Exposuresof this nature must not in any case exceed a maximum of US$ 100 million or 100% of Tier 1 Capital, whichever is the lower.
PIB 4.15.10 Guidance
DFSAwill, in exceptional circumstances, consider an application to waive or modify the limits set out above. In such circumstances the Authorised Firmwill have to make a submission to the DFSAas to why its specific circumstances would warrant a relaxation of the limits specified in (d) above.Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]