The practicalities of incorporating the changes to the LE regime for the aggregation of exposures to connected counterparties have raised considerable industry debate regarding the clarity of definition and the aggregation of large exposures.

On 26 January 2012, the UK Financial Services Authority (“FSA”) issued a consultation paper (“CP12/1”), which seeks to clarify the definition of ‘connected counterparties’ and the treatment of structured finance vehicles.

In this practice note, we provide a high-level review of CP12/1.

Please download a copy here