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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.

You are viewing the version of the document as on 2021-01-01.

Article 1 Definitions

For the purposes of this Regulation, the following definitions shall apply:

  1. (1)

    "general credit exposure" means the risk exposure amount calculated in accordance with Article 92(3) of Regulation (EU) No 575/2013 of an exposure subject to the own funds requirement for credit risk under Part 3, Title 2 of that Regulation, other than an exposure referred to in points (a) to (f) of Article 112;

  2. (2)

    "trading book exposure" means the risk exposure amount calculated in accordance with Article 92(3) of Regulation (EU) No 575/2013 of an exposure subject to the own funds requirement for specific risk under Part 3, Title 4, Chapter 2 of that Regulation, other than an exposure referred to in points (a) to (f) of Article 112;

  3. (3)

    "securitisation exposure" means the risk exposure amount calculated in accordance with Article 92(3) of Regulation (EU) No 575/2013 of an exposure subject to the own funds requirement under Part 3, Title 2, Chapter 5 of that Regulation, other than an exposure referred to in points (a) to (f) of Article 112;

  4. (4)

    "location of the obligor" means the country where the natural or legal person, who is the institution's counterparty to a general credit exposure or the issuer of a financial instrument not included in the trading book or the counterparty to a non-trading book exposure, is ordinarily resident (in the case of a natural person), or has its registered office (in the case of a legal person); for a legal person whose centre of actual administration is in a country other than the country of its registered office, "location of the obligor" means the country of its actual place of administration;

  5. (5)

    "location of the debtor" means the country, where the natural or legal person who is the issuer of the financial instrument in the trading book, or the counterparty to a trading book exposure, is ordinarily resident (in the case of a natural person), or has its registered office (in the case of a legal person); for a legal person whose centre of actual administration is in a country other than the country of its registered office, "location of the debtor" means the country of its actual place of administration;

  6. (6)

    "location of the income" means the country of the location of the assets which generate the income that is the primary source of repayment of the obligation in relation to a specialised lending exposure;

  7. (7)

    "foreign exposure" means a general credit exposure whose obligor is not located in the United Kingdom;

  8. (8)

    "specialised lending exposure" means the general credit exposures possessing the characteristics referred to in Article 147(8) of Regulation (EU) No 575/2013.