Prudential Regulation Authority Rulebook

1

[Note: Provision left blank]

2

[Note: Provision left blank]

3

[Note: Provision left blank]

4

[Note: Provision left blank]

5

In respect of securitisations the securities of which were issued on or after 1 January 2011 but before 1 January 2019 and in respect of securitisations the securities of which were issued before 1 January 2011 where new underlying exposures have been added or substituted after 31 December 2014, the due diligence requirements set out in CRR and Commission Delegated Regulation (EU) 2015/35 respectively shall continue to apply in the version applicable on 31 December 2018 as if they still had effect and were set out expressly here.

For the purposes of this paragraph:

1. (a) Article 256 of Commission Delegated Regulation (EU) 2015/35 is to be read as if it still has effect notwithstanding its deletion by Article 1(7) of Commission Delegated Regulation (EU) 2018/1221; and
2. (b) for the purposes of point (a) of paragraph 3(f) of Article 256 of Commission Delegated Regulation (EU) 2015/35, Article 254 of Commission Delegated Regulation (EU) 2015/35 is to be read as if it still has effect notwithstanding its deletion by Article 1(7) of Commission Delegated Regulation (EU) 2018/1221, together with the following modifications:
   1. (i) paragraph 1 is to be read as if for ‘Article 135(2)(a) of Directive 2009/138/EC’ there were substituted ‘rule 6.1 of the Investments Part of the PRA Rulebook as it had effect on IP completion day’; and
   2. (ii) paragraph 2(b) is to be read as if for ‘Article 242(12) of Regulation (EU) No 575/2013’ there were substituted ‘rule 1.3 of the Securitisation Part of the PRA Rulebook’.

6

In respect of securitisations the securities of which were issued before 1 January 2019 a CRR firm (as defined by Article 4(1)(2A) of CRR as CRR had effect on IP completion day), an insurance undertaking (as defined in section 417(1) of FSMA) and a reinsurance undertaking (as defined in section 417(1) of FSMA) shall continue to apply Article 405 of CRR and Chapters I, II and III and Article 22 of Commission Delegated Regulation (EU) No 625/2014, Articles 254 and 255 of Commission Delegated Regulation (EU) 2015/35 respectively as in the version applicable on 31 December 2018 as if they still had effect and were set out expressly here. For the purposes of this paragraph, Article 405 of CRR is to be read with the following modifications:

1. (a) read paragraph 2 as if:
   1. (i) for the first subparagraph, substitute:
      1. ‘Where:
      2. (a) a mixed financial holding company,
      3. (b) a UK parent institution which is a credit institution,
      4. (c) a financial holding company established in the United Kingdom, or
      5. (d) a subsidiary of such a company or institution;
      6. as an originator or sponsor, securitises exposures from one or more credit institutions, investment firms or other financial institutions which are included in the scope of supervision on a consolidated basis, the requirement set out in paragraph 1 may be satisfied on the basis of the consolidated situation of the mixed financial holding company, UK parent institution or financial holding company concerned’;
   2. (ii) in the second subparagraph for the words from ‘in a timely manner’ to the end there were substituted ‘the information needed to satisfy the requirements set out in Article 409, in a timely manner, to the originator or sponsor and, if the originator or sponsor is a subsidiary, to the mixed financial holding company, UK parent institution or financial holding company which is the parent undertaking of the subsidiary’; and
   3. (iii) after the second subparagraph there were inserted:
      1. ‘In this paragraph:
      2. (a) ‘credit institution’, ‘financial holding company’, ’financial institution’, ‘investment firm’, ‘subsidiary’ and ‘UK parent institution’ have the meaning given in Article 4(1) of CRR; and
      3. (b) ‘mixed financial holding company’ has the meaning given in the PRA Rulebook’; and
2. (b) in paragraph 3, in point (b) ignore ‘of Member States’.

7

[Note: Provision left blank]

8

[Note: Provision left blank]

9

For the purpose of this Article, in the case of securitisations which do not involve the issuance of securities, any references to ‘securitisations the securities of which were issued’ shall be deemed to mean ‘securitisations the initial securitisation positions of which are created’. When applying this Article to securitisations which do not involve the issuance of securities, any references in this Article to ‘securitisations the securities of which were issued before 1 January 2019’ shall be deemed to mean ‘securitisations the initial securitisation positions of which are created before 1 January 2019’ such that this Part applies to any securitisations that create new securitisation positions on or after 1 January 2019.