5

Implicit support and SRT

5.1

The PRA will monitor the support provided by a firm to its securitisation transactions, and will consider this carefully in the assessment of commensurate risk transfer. As part of firms’ ongoing consideration of risk transfer, the PRA expects them to consider the support they have provided to securitisation transactions.

5.2

If a firm is found to have provided support to a securitisation, the expectation that the firm will provide future support to its securitisations is increased. The PRA will take account of this increased expectation in future assessments of commensurate risk transfer for that firm.

5.3

The PRA expects securitisation documentation to make clear, where applicable, that repurchase of securitisation positions by the originator beyond its contractual obligations is not mandatory and may only be made at arm’s length.

5.4

Deleted

5.5

If a firm fails to comply with CRR Article 248(1), the PRA may require it to disclose publically that it has provided non-contractual support to its transaction.

(CRR Articles 243, 244, 248 and 337 and CRD4 Article 98, EBA guidelines on implicit support for securitisation transactions (EBA/GL/2016/08))