• Transfers to Special Purpose Entities (SPEs)

    • PRU 4.14.63

      Where an Originator acts as Underwriter for the Securities issued, the underlying items will not be regarded as being transferred until 90% of the total issuance has been sold to third parties.

    • PRU 4.14.64

      An Originator dealing in Securities which would attract a Credit Quality Grade of 4 or better and issued by an SPE must deduct any holdings in such Securities from its CET1 Capital unless the holding is subject to:

      (a) an ongoing limit of 3% of the Securities issued; and
      (b) a limit of 10% of the Securities issued for a period of five business days:
      (i) immediately following close of the transaction; or
      (ii) in the case of Revolving Securitisations only, at the beginning of the scheduled amortisation period.