# Regulation (EU) 2019/2033 of the European Parliament and of the Council of 27 November 2019 on the prudential requirements of investment firms and amending Regulations (EU) No 1093/2010, (EU) No 575/2013, (EU) No 600/2014 and (EU) No 806/2014 (Text with EEA relevance), Article 41: Exclusions

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

1. The following exposures shall be excluded from the requirements set out in Article 37:
(a) exposures which are entirely deducted from an investment firm’s own funds;
(b) exposures incurred in the ordinary course of the settlement of payment services, foreign currency transactions, securities transactions and the provision of money transmission;
(c) exposures constituting claims against:
(i) central governments, central banks, public sector entities, international organisations or multilateral development banks and exposures guaranteed by or attributable to such persons, where those exposures receive a 0 % risk weight under Articles 114 to 118 of Regulation (EU) No 575/2013;
(ii) the regional governments and local authorities of countries that are members of the European Economic Area;
(iii) central counterparties and default fund contributions to central counterparties.
2. Competent authorities may fully or partially exempt the following exposures from the application of Article 37:
(a) covered bonds;
(b) exposures incurred by an investment firm to its parent undertaking, to other subsidiaries of that parent undertaking or to its own subsidiaries, insofar as those undertakings are supervised on a consolidated basis in accordance with Article 7 of this Regulation or with Regulation (EU) No 575/2013, are supervised for compliance with the group capital test in accordance with Article 8 of this Regulation, or are supervised in accordance with equivalent standards in force in a third country, and provided that the following conditions are met:
(i) there is no current or foreseen material practical or legal impediment to the prompt transfer of capital or repayment of liabilities by the parent undertaking; and
(ii) the risk evaluation, measurement and control procedures of the parent undertaking include the financial sector entity.

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Source: https://www.legislation.gov.uk/eur/2019/2033/article/41 (the official version)
Page: https://openlegislation.uk/eu-regulation-2019-2033/article-41
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.