Recital 4

(4)Criteria should be provided to further specify sectorial diversification. In order to be applicable, sectorial diversification requires a definition of ‘sector’. For practical reasons, high levels of sectorial classification should be used. Council Regulation (EC) No 2223/96 ³ defines institutional sectors which can be used to diversify the investments of the Fund by type of economic entity. In addition, Regulation (EC) No 1893/2006 of the European Parliament and of the Council ⁴ defines a statistical classification of economic activities whose highest level (section) is appropriate to provide criteria for diversification to the Board. Finally, given the mission of the Fund, not only direct but also indirect exposures to the financial sector should be limited.