SECN 7.2 Securitisation positions as underlying exposures
- (1)
1The underlying exposures used in a securitisation shall not include securitisation positions.
- (2)
Paragraph (1) does not apply to:
- (a)
any securitisation the securities of which were issued before 1 January 2019; or
- (b)
any securitisation in respect of which the FCA has disapplied, modified or dispensed with (1) such that the underlying exposures may include securitisation positions.
- (a)
- (1)
1Where an originator, sponsor or SSPE has included securitisation positions as an underlying exposure in a securitisation in accordance with SECN 7.2.1R(1) an institutional investor may apply to the FCA for a waiver of SECN 7.2.1R(1) in order to invest in the resecuritisation. The FCA’s applicable waiver powers are set out in SECN Sch 6.