Article 7U.K.Additional exposure constituted by the structure of a transaction
1.The structure of a transaction shall not constitute an additional exposure if the transaction meets both of the following conditions:
(a)the legal and operational structure of the transaction is designed to prevent the manager of the transaction or a third party from redirecting any cash flows which result from the transaction to persons who are not otherwise entitled under the terms of the transaction to receive these cash flows;
(b)neither the issuer nor any other person can be required, under the transaction, to make a payment to the institution in addition to, or as an advance payment of, the cash flows from the underlying assets.
2.The condition in point (a) of paragraph 1 shall be considered to be met where the transaction is one of the following:
(a)a UCITS as defined in Article 1(2) of Directive 2009/65/EC;
(b)an undertaking established in a third country, that carries out activities similar to those carried out by a UCITS and which is subject to supervision pursuant to a Union legislative act or pursuant to legislation of a third country which applies supervisory and regulatory requirements which are at least equivalent to those applied in the Union to UCITS.