Home FCA Handbook MIFIDPRU MIFIDPRU 5 MIFIDPRU 5.8 Procedures to prevent investment firms from avoiding the K-CON own funds requirement
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MIFIDPRU 5.8 Procedures to prevent investment firms from avoiding the K-CON own funds requirement

01/12/2021R

A firm must not deliberately avoid the K-CON requirement by:

  1. (1)

    undertaking artificial transactions to close out an exposure and create a new exposure; or

  2. (2)

    temporarily transferring an exposure to another undertaking, whether within the same group or not.

01/01/2022R

A firm must maintain systems which ensure that any closing out or transfer that is prohibited by MIFIDPRU 5.8.1R is immediately reported to the FCA in accordance with MIFIDPRU 1.1.10R.