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1The rules in this chapter apply to originators, sponsors and SSPEs which are not PRA-authorised persons, and which are established in the United Kingdom.
The rules in this chapter also apply to institutional investors which are not occupational pension schemes or PRA-authorised persons.
1The underlying exposures used in a securitisation shall not include securitisation positions.
Paragraph (1) does not apply to:
any securitisation the securities of which were issued before 1 January 2019; or
any securitisation in respect of which the FCA has disapplied, modified or dispensed with (1) such that the underlying exposures may include securitisation positions.
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.
1A fully supported ABCP programme shall not be considered to be a resecuritisation for the purposes of SECN 7, provided that none of the ABCP transactions within that programme is a resecuritisation and that the credit enhancement does not establish a second layer of tranching at the programme level.
