The Financial Services and Markets Act 2000 (Excluded Activities and Prohibitions) Order 2014

Financial institution exposures: repo transactions U.K.

18.  A ring-fenced body (“A”) may incur a financial institution exposure to a relevant financial institution (“B”) pursuant to an agreement with B—

(a) for the transfer of its own assets to B on terms—

(i) imposing an obligation on A to buy those assets, or assets of the same description, from B at one or more subsequent times; or

(ii) imposing an obligation on B to transfer those assets, or assets of the same description, to A at one or more subsequent times;

(b) for the transfer of liquid assets from B to A for the purpose of managing A's liquidity risk on terms—

(i) imposing an obligation on B to buy those assets, or assets of the same description from A at one or more subsequent times; or

(ii) imposing an obligation on A to transfer those assets, or assets of the same description, to B at one or more subsequent times.

Commencement Information

I1 Art. 18 in force at 1.1.2019, see art. 1(3)