PART 7Due-diligence requirements

Rules relating to due-diligence requirements of institutional investors33

1

The appropriate regulator must make general rules requiring a relevant institutional investor to carry out due diligence—

a

before holding a securitisation position, and

b

while holding a securitisation position.

2

In this regulation—

  • “appropriate regulator”—

    1. a

      in relation to a relevant institutional investor which is a PRA-authorised person, means the PRA;

    2. b

      in relation to other relevant institutional investors, means the FCA;

  • “general rules”—

    1. a

      in relation to the FCA, has the meaning given in section 137A(2) of FSMA 2000;

    2. b

      in relation to the PRA, has the meaning given in section 137G(2) of FSMA 2000;

  • “relevant institutional investor” means an institutional investor which is an authorised person and which is not—

    1. a

      the trustees or managers of an occupational pension scheme, or

    2. b

      the originator, sponsor or original lender in that securitisation.