Application for Large Exposure Approval: Collateralised Exposures

Summary

This is a JFSC application form used by Jersey deposit-taking businesses (banks) to request approval for a Large Exposure that exceeds 25 percent of the registered person's Agreed Capital Resources, where the exposure is secured by adequate collateral. It must be submitted together with a covering explanatory letter setting out the request in full, since the form alone is not intended to capture all relevant details.

• Exposure details: Section A requires details of the registered person, customer, any previous approval, requested amount, purpose, requested end date, capital base and ratios, and current and prospective Large Exposure amounts as a percentage of ACR.
• Collateral details: Section B requires details of collateral supporting the exposure, including cash (same or other currency), government debt holdings and ratings, any legal opinion on enforceability of the collateral, and risk weightings before and after collateral.
• Legal basis: The form implements Section 5.4 and Appendix III of the Code of Practice for Deposit-taking Business, which set the requirements for approval of Large Exposures above 25 percent of ACR.

The form itself does not state a filing deadline; it must be used whenever a registered person seeks JFSC approval for a collateralised exposure exceeding the 25 percent threshold, prior to entering into or renewing that exposure.

Key obligations

• A registered deposit-taking business seeking to exceed the 25 percent Agreed Capital Resources Large Exposure limit using collateral must submit this application form to the JFSC.
• The application must be accompanied by a covering explanatory letter providing an overview of the request and any details not captured by the form.
• The applicant must disclose details of connected parties by separate letter on the first application relating to a connection.
• The applicant must state current and prospective Large Exposure amounts, capital ratios, and collateral details (cash, government debt, ratings, legal opinion, risk weighting) as specified in the form.

Applies to

registered persons (deposit-taking businesses/banks) regulated under the Code of Practice for Deposit-taking Business