SECN 4.3 Requirements on sponsors

As regards fully supported ABCP transactions the requirement specified in SECN 4.2.1R(1)(a) shall apply to the sponsor and not to the institutional investor.

In such cases, the sponsor must verify that the originator or original lender which is not a CRR firm or an FCA investment firm grants all the credits giving rise to the underlying exposures (other than any underlying exposures that are trade receivables not in the form of a loan) on the basis of:

1. 1. (a)

      sound and well-defined criteria; and

   2. (b)

      clearly established processes for their approving, amending, renewing and financing those credits,

1and has effective systems in place to apply those criteria and processes, in accordance with SECN 8.2 (or equivalent PRA rules).