1For the purposes of point (s) of Article 4(1), a counterparty may only use units or shares in funds which meet the criteria set out in Article 7(2)(b) of the Large Exposures (CRR) Part of the PRA Rulebook as eligible collateral where all the following conditions are met:
the units or shares have a daily public price quote;
the funds are limited to investing in assets that are eligible in accordance with point (a), (c), (d), (e), (f), (g), (h), (i), (j), (k) or (l) of Article 4(1); and
the funds meet the criteria set out in Article 132(3) of the Standardised Approach and Internal Ratings Based Approach to Credit Risk (CRR) Part of the PRA Rulebook.
For the purposes of point (b), funds may use derivative instruments to hedge the risks arising from the assets in which they invest.
Where a fund invests in shares or units of other funds, the conditions laid down in the first subparagraph shall also apply to those funds.