IBANK 10.2.2 Parties to securitisation

(1) For purposes of calculating an Islamic 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, an Islamic 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 sukuk issuance;
(b) a sponsor of the sukuk issuance;
(c) an adviser to the sukuk issuance;
(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 sukuk issuance in relation to the underlying assets.
Note 2 An Islamic banking business firm may act as sponsor of a sukuk issuance 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.

Note 3 Depending on the securitisation structure, a servicer (instead of the manager of the sukuk or issuer) may carry out the following activities:
(a) handling related taxes;
(b) managing escrow accounts;
(c) remitting payments;
(d) obtaining takaful;
(e) maintaining the underlying assets on behalf of the lessor (sukuk holders) in ijarah or IMB sukuk.
Note 4 The originator of a sukuk issuance may act as servicer of the underlying assets.
(2) The contractual terms of the sukuk issuance determine the rights of the sukuk holders to the securitised assets.

Note For the rights of sukuk-holders, see rule 10.2.10 (Effects of true sale on sukuk holders).
Inserted by QFCRA RM/2017-1 (as from 1st April 2017).