{
  "url": "https://openlegislation.uk/eu-regulation-2013-575/article-165",
  "json_url": "https://openlegislation.uk/eu-regulation-2013-575/article-165.json",
  "legislation": "eur/2013/575",
  "legislation_title": "Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (Text with EEA relevance)",
  "legislation_url": "https://openlegislation.uk/eu-regulation-2013-575",
  "path": "article/165",
  "kind": "article",
  "number": "165",
  "heading": "Equity exposures subject to the PD/LGD method",
  "text": "1. PDs shall be determined in accordance with the methods for corporate exposures.\nThe following minimum PDs shall apply:\n(a) 0,09 % for exchange traded equity exposures where the investment is part of a long-term customer relationship;\n(b) 0,09 % for non-exchange traded equity exposures where the returns on the investment are based on regular and periodic cash flows not derived from capital gains;\n(c) 0,40 % for exchange traded equity exposures including other short positions as set out in Article 155(2);\n(d) 1,25 % for all other equity exposures including other short positions as set out in Article 155(2).\n2. Private equity exposures in sufficiently diversified portfolios may be assigned an LGD of 65 %. All other such exposures shall be assigned an LGD of 90 %.\n3. M assigned to all exposures shall be five years.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "X",
      "label": "X1",
      "text": "Substituted by Corrigendum to Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (OJ L 176, 27.6.2013, p. 1)."
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/eur/2013/575/article/165",
    "retrieved_at": "2026-11-01T14:48:36.198705+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}