Passive breach

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A breach of an asset ratio of some kind (the vaunted UCITS 10% concentration limit, or the Regulation T requirement for the a prime broker’s customer to have $500,000 in liquid assets) that is breached not by active investment or divestment, but by the relative change in market value of assets in an existing portfolio.

See also

• SEC no-action letter and Regulation T
• UCITS