Commission working document on treatment of CIUs

03 February 2004

The European Commission has launched a Working Document to seek the views of industry and other interested parties on the proposed future treatment of Collective Investment Undertakings (CIUs) in the trading book and banking book.

As outlined in the CP3 Explanatory Document, the proposed treatment for CIUs booked in the trading book is aimed at increasing the risk sensitivity of the capital charges by allowing an institution to look through the CIU into the composition of the CIU’s portfolio to apply a market risk charge.

The Commission is seeking comments from interested parties on the proposed new rules by 29th February 2004.

Working document

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