PIB A4.11.8 Guidance:

1. When considering this Rule the Authorised Firm should consider the following factors:
a. the structure, independence and control of the transaction, including governance arrangements;
b. the inter relatedness of the underlying Exposures;
c. beneficial owners of the underlying Exposures and whether they could be deemed Connected or Closely Related; and
d. whether the transactions are conducted on an arm's length basis.
2. An Authorised Firm should look through the structure to determine whether there are any Counterparties or Exposures that should be considered a Concentration Risk.
Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]