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Recital 11

Recital 11

(11)Whereas a group may provide additional liquidity to an investment firm, such a group may also use significant liquid resources belonging to the investment firm through agreements and other asset-transfer mechanisms between the investment firm, on one hand, and the parent undertaking or any other entities of the group, on the other hand. Therefore, competent authorities should be required to assess the overall group structure and consider the implications that such agreements and other asset-transfer mechanisms may have on the liquidity risk of investment firms that are part of such a group.

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