By way of derogation from Article 2(2), counterparties may provide in their risk management procedures that initial margin collected is reduced by an amount up to EUR 50 million in the case of points (a) and (b) of this paragraph or EUR 10 million in the case of point (c) where:
neither counterparty belongs to any group;
the counterparties are part of different groups;
both counterparties belong to the same group.
Where a counterparty does not collect initial margins in accordance with paragraph 1(b), the risk management procedures referred to in Article 2(1) shall include provisions on monitoring, at group level, whether that threshold is exceeded and provisions for the retention of appropriate records of the group's exposures to each single counterparty in the same group.
UK UCITS and AIFs (as defined in regulation 3 of the Alternative Investment Fund Managers Regulation 2013) managed by AIFMs (as defined in regulation 4 of the Alternative Investment Fund Managers Regulation 2013) authorised or registered in accordance with the Alternative Investment Fund Managers Regulations 2013 shall be considered distinct entities and treated separately when applying the thresholds referred to in paragraph 1 where the following conditions are met:
the funds are distinct segregated pools of assets for the purposes of the fund's insolvency or bankruptcy;
the segregated pools of assets are not collateralised, guaranteed or otherwise financially supported by other investment funds or their managers.