# The Financial Services and Markets Act 2000 (Excluded Activities and Prohibitions) Order 2014, Article 18: Financial institution exposures: repo transactions


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.

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Source: https://www.legislation.gov.uk/ukdsi/2014/9780111117101/article/18 (the official version)
Page: https://openlegislation.uk/draft-financial-services-and-markets-act-2000-excluded-activities-and-prohibitions-order-2014/article-18
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.