PRU 4.14.3

Past version: effective from 21/10/2015 - 20/10/2015
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An Authorised Person must implement and maintain appropriate risk management systems to identify, manage, monitor and, where applicable, control all risks in relation to a securitisation transaction whether the firm is an investor, Originator or Sponsor. In particular, such risk management systems should effectively address the following risks:

(a) the liquidity and capital implications that may arise from the items returning to the balance sheet;
(b) the Operational Risks that may arise under a securitisation; and
(c) reputational risks that may arise as a result of its securitisation activities.