# The Financial Services and Markets Act 2000 (Excluded Activities and Prohibitions) Order 2014, Article 19B: Financial institution exposures: changes in status of counterparties


(1) Subject to paragraph (2), where a ring-fenced body incurs a prohibited financial institution exposure as a result of a counterparty to a transaction becoming a relevant financial institution at any time after the date upon which the transaction was entered into, that exposure is permitted for a period of twelve months commencing on the date upon which the counterparty became a relevant financial institution.
(2) A ring-fenced body is not permitted to incur the prohibited financial institution exposure by virtue of paragraph (1) where, at the time the transaction was entered into, the ring-fenced body knew, or could reasonably be expected to have known, that the counterparty would become a relevant financial institution.
(3) In this article, “prohibited financial institution exposure” means a financial institution exposure which would be prohibited under article 14(1) if it was not permitted under this article.

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Source: https://www.legislation.gov.uk/uksi/2014/2080/article/19B (the official version)
Page: https://openlegislation.uk/financial-services-and-markets-act-2000-excluded-activities-and-prohibitions-order-2014/article-19B
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.