10.The LTA requires a bank to assign the same risk weights to the underlying exposures of a fund as would be assigned if the bank held the exposures directly. The information used for to determine the risk weights must meet the requirements stated in the Standards, including sufficiency, frequency, and third party review. However, that information is not required to be derived from sources that are subject to an external audit.

11.RWA and assets of investment funds should, to the extent possible, be evaluated using the same accounting standards the bank would apply if the assets were held directly. However, where this is not possible due to constraints on available information, the evaluation can be based on the accounting standards applied by the investment fund, provided the treatment of the numerator (RWA) and the denominator (total unweighted assets) is consistent.

12.If a bank relies on third-party calculations for determining the underlying risk weights of the exposures of the fund, the risk weights should be increased by a factor of 1.2 times to compensate for the fact that the bank cannot be certain about the accuracy of third-party information. For instance, any exposure that is ordinarily subject to a 20% risk weight under the risk-based capital standards would be weighted at 24% (1.2×20%) when the look-through is performed by a third party.