Concession limit guarantee approval application form

Summary

This is an application form used by Jersey deposit-taking businesses (banks) to seek JFSC approval for a Large Exposure that exceeds 25% of the bank's agreed capital resources, where that exposure is guaranteed by a counterparty for which a Concession Limit has already been approved. It implements the requirements of Section 5.4 and Appendix III of the Code of Practice for Deposit-taking Business.

• Purpose: To request approval for a Large Exposure guaranteed by a counterparty holding an existing Concession Limit.
• Required accompanying letter: Must be submitted together with a covering explanatory letter setting out the request, its purpose, and any details not captured by the form.
• Data required: Customer and counterparty details, requested amount and purpose, Adjusted Capital Base, Agreed Capital Resources, current and post approval Large Exposure amounts (including those not exempt from aggregate limits), capital ratios (CET1, Tier 1, Total Capital) before and after drawdown, Concession Limit usage, legal opinion details, and risk weightings of customer and guarantor.
• Connected parties: On the first application relating to a connection, details of connected parties must be provided by separate letter.

The form itself does not set out approval criteria or timelines; it is a data collection template supporting a substantive request governed by the Code of Practice for Deposit-taking Business.

Key obligations

• A registered person (bank) must complete this application form for each request for approval of a Large Exposure guaranteed by a counterparty with an existing Concession Limit
• The application form must be submitted together with a covering explanatory letter describing the request and any additional relevant details not captured by the form
• On the first application relating to a connection, the registered person must provide details of connected parties by separate letter
• The registered person must report current and projected capital ratios, capital resources, and Large Exposure amounts, including amounts exempt and not exempt from aggregate exposure limits
• The registered person must state the legal firm and date of any legal opinion relied upon regarding the guarantee or letter of temporary authority, and provide a copy if it is the first case of reliance

Applies to

banks, registered persons under the Code of Practice for Deposit-taking Business