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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.



      1. (1) (in relation to a firm but subject to (2) and 101(6)101) the maximum loss which the firm might suffer if:
        1. (a) a counterparty or a group of connected counterparties fail to meet their obligations; or
        1. (b) it realises assets or off-balance sheet positions
      1. (2) (137for the purposes of the calculation of the credit risk capital component and the counterparty risk capital component (including BIPRU 3 (Standardised credit risk), BIPRU 4 (The IRB approach), BIPRU 5 (Credit risk mitigation)75,75 BIPRU 9 (Securitisation)101 an asset or off-balance sheet item.

    [Note: article 77 of the Banking Consolidation Directive]137

      1. (3) [delete]
      1. (4) (in IFPRU and to calculate own funds requirements under Part Three Title II ( credit risk and counterparty credit risk)) has the meaning in article 5(1) of the UK CRR137.
      1. (5) (in IFPRU 8.2 (Large exposures) for the purpose of Part Four ((Large exposures) of the UK CRR137) has the meaning in article 389 of the UK CRR137 (Large exposures: definitions).
      1. (6) (in MIPRU) an asset or liability.101