Home FCA Handbook SECN SECN 7
You are viewing SECN 7 Ban on resecuritisation as of . SECN 7 Ban on resecuritisation was last updated on 01/11/2024.

SECN 7.1 Application

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  1. (1)

    The rules in this chapter apply to originators, sponsors and SSPEs which are not PRA-authorised persons, and which are established in the United Kingdom.

  2. (2)

    The rules in this chapter also apply to institutional investors which are not occupational pension schemes or PRA-authorised persons.

SECN 7.2 Securitisation positions as underlying exposures

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  1. (1)

    The underlying exposures used in a securitisation shall not include securitisation positions.

  2. (2)

    Paragraph (1) does not apply to:

    1. (a)

      any securitisation the securities of which were issued before 1 January 2019; or

    2. (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.

01/11/2024G
  1. (1)

    Where 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.

SECN 7.3 Fully supported ABCP programme

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A 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.