{
  "url": "https://openlegislation.uk/eu-regulation-2014-1187/article-7",
  "json_url": "https://openlegislation.uk/eu-regulation-2014-1187/article-7.json",
  "legislation": "eur/2014/1187",
  "legislation_title": "Commission Delegated Regulation (EU) No 1187/2014 of 2 October 2014 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council as regards regulatory technical standards for determining the overall exposure to a client or a group of connected clients in respect of transactions with underlying assets (Text with EEA relevance)",
  "legislation_url": "https://openlegislation.uk/eu-regulation-2014-1187",
  "path": "article/7",
  "kind": "article",
  "number": "7",
  "heading": "Additional exposure constituted by the structure of a transaction",
  "text": "1. The structure of a transaction shall not constitute an additional exposure if the transaction meets both of the following conditions:\n(a) the legal and operational structure of the transaction is designed to prevent the manager of the transaction or a third party from redirecting any cash flows which result from the transaction to persons who are not otherwise entitled under the terms of the transaction to receive these cash flows;\n(b) neither the issuer nor any other person can be required, under the transaction, to make a payment to the institution in addition to, or as an advance payment of, the cash flows from the underlying assets.\n2. The condition in point (a) of paragraph 1 shall be considered to be met where the transaction is one of the following:\n(a) a UCITS as defined in Article 1(2) of Directive 2009/65/EC;\n(b) an undertaking established in a third country, that carries out activities similar to those carried out by a UCITS and which is subject to supervision pursuant to a Union legislative act or pursuant to legislation of a third country which applies supervisory and regulatory requirements which are at least equivalent to those applied in the Union to UCITS.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/eur/2014/1187/article/7",
    "retrieved_at": "2026-11-01T14:47:10.295919+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."
}