Document ID: chunk:federal_register_of_legislation:F2022C00868:reg:30:p1
Version: federal_register_of_legislation:F2022C00868
Segment Type: reg
Provision Reference: reg 30 (pt 1/2)
Character Range: 73460–76120

30  Single entity limit
 (1) The value of a holding for the purpose of this section and sections 31 and 33 is the higher of:
 (a) the amount of the holding after considering any reduction in risk due to offsetting exposures; and
 (b) the value of the holding disregarding the offsetting effects of derivatives.
 (2) Subject to subsection (3) and section 33, no more than 5% of the value of the assets of a passport fund may be held in assets or arrangements that:
 (a) relate to the same entity, that is not an entity that:
 (i) is an assessed central clearing party; or
 (ii) is subject to prudential supervision by a financial supervisory authority in its place of incorporation which is, in the written opinion of the home regulator for the passport fund, generally compliant with the guidelines of the Basel Committee on Banking Supervision in an economy where the counterparty has a principal place of business and in the reasonable opinion of the operator is of low risk; and
 (b) are of any one or more of the following types:
 (i) transferable securities other than:
 (A) interests in financial asset regulated CISs; and
 (B) risk‑assessed government securities;
 (ii) money market instruments other than risk‑assessed government securities;
 (iii) derivatives;
 (iv) securities lending arrangements.
 (3) Subject to section 33, the single entity limit set out in subsection (2) may be raised to 10% in relation to assets or arrangements that:
 (a) have been assessed by the operator as having an acceptable risk; or
 (b) having considered a written opinion of a credit rating agency that is regulated in providing credit ratings in an IOSCO jurisdiction and any other information of which it is aware under its risk assessment and risk management procedures, the operator has no reason to doubt have an acceptable risk; or
 (c) excluding assets and arrangements referred to in paragraph (a) or (b) do not, in aggregate, exceed 40% of the value of the assets of the passport fund.
 (4) Subject to section 33, no more than 15% of the value of the assets of a passport fund may be held in assets or arrangements that:
 (a) relate to the same entity that is subject to prudential supervision by a financial supervisory authority in its place of incorporation which is, in the written opinion of the home regulator for the passport fund, generally compliant with the guidelines of the Basel Committee on Banking Supervision in an economy where the counterparty has a principal place of business and in the reasonable opinion of the operator is of low risk; and
 (b) are of any one or more of the types mentioned in paragraph (2)(b).
 (5) Subject to section