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You are viewing the version of the document as on 2024-11-19.

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    2024-11-19

SECN 4.5 Institutional investor delegation

SECN 4.5.1R

Without prejudice to SECN 4.2 and SECN 4.4, where the managing party has been given authority by the institutional investor described below to make investment management decisions that might expose it to a securitisation, the following paragraphs apply in respect of any exposure to a securitisation arising from those decisions. Unless specified below the responsibility for fulfilling the obligations under SECN 4.1, SECN 4.2 and SECN 4.4 shall remain with the institutional investor:

  1. (1)

    Where an institutional investor who is subject to SECN 4.5.1R (‘the managing party’) is instructed under SECN 4.5.1R to fulfil any of the obligations of another institutional investor who is also subject to SECN 4.5.1R and fails to do so, the managing party is responsible for the failure to comply with the relevant obligation and not the institutional investor who is exposed to the securitisation.

  2. (2)

    Where an institutional investor who is subject to SECN 4.5.1R (‘the managing party’) is instructed under SECN 4.5.1R to fulfil any of the obligations of another institutional investor who is subject to Article 5 of Chapter 2 of the Securitisation Part of the PRA Rulebook or to regulation 32A to 32D of the Securitisation Regulations 2024 and fails to do so, the managing party is responsible for the failure to comply with the relevant obligation.

  3. (3)

    Where an institutional investor (‘the managing party’) who is subject to Article 5 of Chapter 2 of the Securitisation Part of the PRA Rulebook is instructed under SECN 4.5.1R to fulfil any of the obligations of another institutional investor who is subject to SECN 4.5.1R and fails to do so, the institutional investor who is exposed to the securitisation is not responsible for the failure to comply.