19.When a bank has an investment in one fund (e.g., Fund A) that itself has an investment in another fund (e.g., Fund B), the risk weight applied to the investment holding of the first fund (that is, Fund A’s investment in Fund B) should be determined by using the same three approaches set out above (LTA, MBA, and FBA). If fund investments are further layered (for example, if Fund B has investments in a Fund C), the risk weights applied to the additional layers of investment (that is, Fund B’s investment in Fund C) can be determined using the LTA, but only if the LTA was also used for determining the risk weight for the investment in the fund at the previous layer (Fund A’s investment in Fund B). Otherwise, the bank must apply the FBA to the additional investment layers.