• PRU 4.14.13 PRU 4.14.13

    An Authorised Person must include as deductions from CET1 Capital any increase in issued capital or reserves resulting from a securitisation, such as that associated with expected future margin income resulting in a gain-on-sale that is recognised as issued capital or reserves.

    • Guidance

      Gain-on-sale arises when there has been an increase in equity of the Authorised Person associated with recognising the discounted value of the expected future margin income as part of regulatory capital.