The Securitisation (Amendment) (EU Exit) Regulations 2019

Prospective

Yn ddilys o 31/12/2020

PART 3 U.K. Amendment of the CRA Regulation

Article 3 (definitions) U.K.

35.  In Article 3 of the CRA Regulation, in paragraph 1 for the definition of ‘structured finance instrument’M1 substitute—

“‘securitisation instrument’ means a financial instrument or other assets resulting from a securitisation transaction or scheme whereby the credit risk associated with an exposure or pool of exposures is tranched, having the following characteristics:

(i)

payments in the transaction or scheme are dependent upon the performance of the exposure or pool of exposures;

(ii)

the subordination of tranches determines the distribution of losses during the ongoing life of the transaction or scheme; and

(iii)

the transaction or scheme does not create exposures which possess all of the characteristics listed in Article 147(8) of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012;”.

Commencement Information

I1 Reg. 35 in force on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(2)(3)

Marginal Citations

M1 This definition was substituted, with the rest of Article 3(1), by S.I. 2019/266 the Credit Rating Agencies (Amendment, etc.) (EU Exit) Regulations 2019.