SECN 2.5 STS notification

1. (1)

   1If a securitisation which is not an ABCP programme or an ABCP transaction meets the relevant STS criteria, the originator and sponsor jointly may notify the FCA of that fact as described in SECN 2.6.

2. (2)

   If:

   1. (a)

      an ABCP programme meets the relevant STS criteria; or

   2. (b)

      an ABCP transaction meets the relevant STS criteria,

   the sponsor may notify the FCA of that fact as described in SECN 2.6.

3. (3)

   A notice given in accordance with (1) or (2) must explain how the relevant STS criteria have been complied with.

4. (4)

   If the originator and sponsor involved in a securitisation jointly give the STS notification, the STS notification must designate one of them to be the first contact point for investors and the FCA.

1. (1)

   1The originator, sponsor or SSPE may use the service of a third party registered under regulation 25 of the Securitisation Regulations 2024 to check whether a securitisation complies with the relevant STS criteria.

2. (2)

   When using a third party under SECN 2.5.2R(1) the originator, sponsor or SSPE must check that such third party is registered under regulation 25 of the Securitisation Regulations 2024.

3. (3)

   Using the service of a third party under SECN 2.5.2R (1) does not affect the liability of the originator, sponsor or SSPE in respect of their legal obligations under SECN.

4. (4)

   If the originator, sponsor or SSPE use the service of a registered third party under (1), the STS notification must include a statement that the registered third party has confirmed compliance with the STS criteria.

5. (5)

   The STS notification must include the registered third party’s:

   1. (a)

      name; and

   2. (b)

      place of establishment.

1If the originator or original lender is not a CRR firm or an FCA investment firm, the STS notification pursuant to SECN 2.5.1R(1) or SECN 2.5.1R(2) must be accompanied by:

1. (1)

   confirmation by the originator or original lender that (other than in respect of trade receivables not originated in the form of a loan):

   1. (a)

      its credit granting is based on sound and well-defined criteria and clearly established processes for approving, amending, renewing and financing credits; and

   2. (b)

      the originator or original lender has effective systems in place to apply such processes in accordance with SECN 8 (or equivalent PRA rules); and

2. (2)

   a declaration by the originator or original lender as to whether credit granting referred to in (1) is subject to supervision.

1The originator and sponsor must immediately notify the FCA if a securitisation no longer meets the relevant STS criteria.

1Multiple STS notifications may be submitted in respect of the same securitisation where:

1. (1)

   the relevant securitisation is an ABCP transaction, in which case one notification should be submitted in accordance with SECN 2.5.1(2) by each sponsor of a relevant ABCP programme wishing to treat the securitisation as an STS securitisation; or

2. (2)

   both a securitisation which is not an ABCP transaction or an ABCP programme and an ABCP transaction, in which case one notification may be submitted in accordance with SECN 2.5.1R(1) and one notification should be submitted in accordance with SECN 2.5.1(2) by each sponsor of a relevant ABCP programme wishing to treat the securitisation as an STS securitisation.