BIPRU 8.9A Consolidated large exposure requirements
Integrated groups: core UK group and non-core large exposures group
- (1)
1BIPRU 10 (Large exposures) applies to a firm's UK consolidation group or (subject to (2)) non-EEA sub-group as if it were a single undertaking.
- (2)
A firm may exempt the exposures of its non-EEA sub-group to its core concentration risk group counterparty or non-core concentration risk group counterparty from the limits in BIPRU 10.5 (Limits on exposures) that apply to the non-EEA sub-group on a sub-consolidated basis.
The effect of BIPRU 8.9A.1R (2) is that there is no limit on a sub-consolidated basis for exposures of a firm's non-EEA sub-group to its core concentration risk group counterparty or non-core concentration risk group counterparty. This is because those exposures are included in the large exposure limits that apply to the firm's UK consolidation group.
In relation to a firm, intra-group exposures that are exempt under a non-core large exposures group waiver may be excluded when calculating the limits in BIPRU 10.5 (Limits on exposures) that apply to the UK consolidation group or non-EEA sub-group, provided that the total amount of such exposures and the other exposures which are exempt under a non-core large exposures group waiver do not exceed the limit in BIPRU 10.9A.7 R (Non-trading book backstop large exposure limit for non-core large exposures group).