Article 3 Retainers of material net economic interest

The retained material net economic interest shall not be split amongst different types of retainer. The requirement to retain a material net economic interest shall be fulfilled in full by any of the following:

1. (a)

   the originator or multiple originators;

2. (b)

   the sponsor or multiple sponsors;

3. (c)

   the original lender or multiple original lenders.

Where the securitised exposures are created by multiple originators, the retention requirement shall be fulfilled by each originator, in relation to the proportion of the total securitised exposures for which it is the originator.

Where the securitised exposures are created by multiple original lenders, the retention requirement shall be fulfilled by each original lender, in relation to the proportion of the total securitised exposures for which it is the original lender.

By way of derogation from paragraphs 2 and 3, where the securitised exposures are created by multiple originators or multiple original lenders, the retention requirement may be fulfilled in full by a single originator or original lender provided that either of the following conditions are met:

1. (a)

   the originator or original lender has established and is managing the programme or securitisation scheme;

2. (b)

   the originator or original lender has established the programme or securitisation scheme and has contributed over 50 % of the total securitised exposures.

Where the securitised exposures have been sponsored by multiple sponsors, the retention requirement shall be fulfilled by either:

1. (a)

   the sponsor whose economic interest is most appropriately aligned with investors as agreed by the multiple sponsors on the basis of objective criteria including the fee structures, the involvement in the establishment and management of the programme or securitisation scheme and exposure to credit risk of the securitisations;

2. (b)

   by each sponsor proportionately in relation to the number of sponsors.