BANK 4.6.5 Parties to securitisation

For purposes of calculating a banking business firm's capital requirements, the parties to a securitisation are the originator, the issuer and the investors.

Note 1 Depending on the securitisation structure, a banking business firm may be (or act in the capacity of) originator, issuer, investor or any 1 or more of the following:

(a) a manager of the securitisation;
(b) a sponsor of the securitisation;
(c) an adviser to the securitisation;
(d) an entity to place the securities with investors;
(e) a provider of credit enhancement;
(f) a provider of a liquidity facility;
(g) a servicer to carry out certain activities usually carried out by the manager of the securitisation in relation to the underlying assets.

Note 2 A banking business firm may act as sponsor of a securitisation or similar programme involving assets of a customer. As sponsor, the firm earns fees to manage or advise on the programme, place the securities with investors, provide credit enhancement or provide a liquidity facility.

Inserted by QFCRA RM/2017-2 (as from 1st April 2017).