ANNEX VIIICREDIT RISK MITIGATION

PART 1Eligibility

1.FUNDED CREDIT PROTECTION

1.3.Collateral

1.3.1.Eligibility under all approaches and methods

9.Units in collective investment undertakings may be recognised as eligible collateral if the following conditions are satisfied:

  1. (a)

    they have a daily public price quote; and

  2. (b)

    the collective investment undertaking is limited to investing in instruments that are eligible for recognition under points 7 and 8.

The use (or potential use) by a collective investment undertaking of derivative instruments to hedge permitted investments shall not prevent units in that undertaking from being eligible.