(1) For the purpose of Regulation 70 of the UCITS Regulations and the calculation of issuer concentration limits of a UCITS, a responsible person shall -
(a) include any net exposure to a counterparty generated through a securities lending or repurchase agreement, where net exposure means the amount receivable by a UCITS less any collateral provided by the UCITS,
(b) include exposures created through the reinvestment of collateral, and
(c) establish whether the exposure of the UCITS is to an OTC counterparty, a broker, a central counterparty or a clearing house.
(2) The position exposure of a UCITS, if any, to the underlying assets of an FDI, including an FDI that is embedded in transferable securities, money-market instruments or investment funds, when combined with positions resulting from direct investments -
(a) shall be calculated in accordance with paragraph (3), and
(b) shall not exceed the investment limits set out in Regulations 70 and 73 of the UCITS Regulations.
(3) For the
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