1. For the purposes of Article 46(5) of Regulation (EU) No 909/2014, a CSD shall hold its financial assets in diversified institutions referred to in Article 46(1) of that Regulation in order to remain within acceptable concentration limits.

2. For the purposes of Article 46(5) of Regulation (EU) No 909/2014, acceptable concentration limits shall be determined based on the following:

(a) the geographic distribution of the entities with which the CSD holds its financial assets;

(b) the interdependency relationships that the entity holding the financial assets or entities of its group may have with the CSD;

(c) the level of credit risk of the entity holding the financial assets.