In the context of Article 248 of the Capital Requirements Regulation, which sets out restrictions on sponsor institutions and originator institutions providing support to securitisations beyond their contractual obligations, the EBA is currently seeking views on what constitutes arm’s length conditions, and when a transaction is not structured to provide support for securitisations. The proposed Guidelines include an objective test for both, in addition to providing guidance to those assessing whether a transaction is not structured to provide support and the applicable notification requirements for those transactions.
The closing date for responses to the EBA Consultation is 20 April 2016.
