Regulatory Alerts2021-06-16
Added · Updated
IFR/IFD – concentration risk
Investment firms may apply for exemptions from concentration risk limits under Article 41(2) of the IFR for covered bond exposures and intragroup exposures, provided specific organizational, risk management, and legal conditions are met. Applications for intragroup exemptions require detailed documentation regarding group structure, risk policies, and legal impediments to fund transfers. Additionally, firms temporarily exceeding limits under Article 38(2) may request permission to restore compliance if the breach was unforeseen, did not exceed 100% of required own funds, and was not the result of regular credit risk transactions.
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