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Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

operational risk

      1. 61
        1. (1) (in COLL and FUND) the risk of loss for a UCITS or AIF resulting from inadequate internal processes and failures in relation to the people and systems of the management company or AIFM or from external events, and it includes legal and documentation risk and risk resulting from the trading, settlement and valuation procedures operated on behalf of the fund.
        1. (2) (in GENPRU (except GENPRU 3 (Cross sector groups) and BIPRU (except BIPRU 12 (Liquidity Standards)) 96the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events, including legal risk.
        1. [Note: article 4(22) of the Banking Consolidation Directive]96
        1. (3) (except in (1) and (2)) has the meaning in article 4(1)(52) of the UK CRR96.