(1) A ring-fenced body may incur a financial institution exposure to a relevant financial institution ("A") where -
(a) the only business of A (apart from incidental activities) is to acquire, hold and manage assets from or for an undertaking which is not a relevant financial institution ("B"); and
(b) all or part of A's assets are being used to form the whole or part of the security for a loan or any other finance provided to A by the ring-fenced body or by a conduit vehicle of the ring-fenced body for the benefit of B.
(2) A ring-fenced body ("C") may incur a financial institution exposure to a relevant financial institution ("D") where -
(a) D was established by, or is operated for the benefit of, C; and
(b) the only business of D (apart from incidental activities) is -
(i) to acquire, hold and manage assets from or for C, or
(ii) to make loans or provide other finance at the direction or on the advice of C using resources provided by C or raised in the financial markets to enti
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