# 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), Article 7: Additional exposure constituted by the structure of a transaction

Extent: E+W+S+N.I.

1. The structure of a transaction shall not constitute an additional exposure if the transaction meets both of the following conditions:
(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;
(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.
2. The condition in point (a) of paragraph 1 shall be considered to be met where the transaction is one of the following:
(a) a UCITS as defined in Article 1(2) of Directive 2009/65/EC;
(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.

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Source: https://www.legislation.gov.uk/eur/2014/1187/article/7 (the official version)
Page: https://openlegislation.uk/eu-regulation-2014-1187/article-7
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.