Passive breach

The Jolly Contrarian’s Glossary The snippy guide to financial services lingo.™ Go Premium Index — Click the ᐅ to expand: Glossary Comments? Questions? Suggestions? Requests? Insults? We’d love to 📧 hear from you. Sign up for our newsletter.

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