Article 7
Additional exposure constituted by the structure of a transaction
1. The structure of a transaction shall not constitute an additional exposure if the transaction meets both of the following conditions:
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(a) |
the legal and operational structure of the transaction is designed to prevent the manager of the transaction or a third party from redirecting any cash flows which result from the transaction to persons who are not otherwise entitled under the terms of the transaction to receive these cash flows; |
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(b) |
neither the issuer nor any other person can be required, under the transaction, to make a payment to the institution in addition to, or as an advance payment of, the cash flows from the underlying assets. |
2. The condition in point (a) of paragraph 1 shall be considered to be met where the transaction is one of the following:
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(a) |
a UCITS as defined in Article 1(2) of Directive 2009/65/EC; |
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(b) |
an undertaking established in a third country, that carries out activities similar to those carried out by a UCITS and which is subject to supervision pursuant to a Union legislative act or pursuant to legislation of a third country which applies supervisory and regulatory requirements which are at least equivalent to those applied in the Union to UCITS. |