- Question ID
-
2021_6293
- Legal act
- Regulation (EU) No 2017/2402 (SecReg)
- Topic
- Provisions applicable to all securitisations
- Article
-
2
- Paragraph
-
6
- COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
- EBA/GL/2018/09 - Guidelineson the STS criteria for non-ABCP securitisation
- Article/Paragraph
-
Not applicable
- Name of institution / submitter
-
De Nederlandsche Bank (DNB)
- Country of incorporation / residence
-
Netherlands
- Type of submitter
-
Competent authority
- Subject matter
-
Credit protection by an insurer provided directly on the pool of receivables
- Question
-
Can credit protection by an insurer, if provided directly on the pool of receivables (and not on a position held by an investor or originator in a structured transaction, can this protection), under circumstances, be taken into account in determining whether the transaction is tranched?
- Background on the question
-
It is unclear whether credit protection by an insurer, if provided directly on the pool of receivables (and not on a position held by an investor or originator in a structured transaction, can this protection), under circumstances, can be taken into account in determining whether the transaction is tranched.
According to Article 2(6) Regulation (EU) 2017/2402 (SecReg)credit protection provided by third parties directly to holders of positions in a segment or in other segments of a structured transaction with an underlying pool of exposures should be disregarded.
If the protection is directly to the receivables instead of to the position of one of the parties, while capped to a maximum annual liability, it is unclear whether this credit insurance can then be considered as part of a tranche, or it should be disregarded as by Article 2(6).
- Submission date
- Rejected publishing date
-
- Rationale for rejection
-
This question has been rejected because the question is not sufficiently clear.
The Single Rule Book Q&A tool has been established to provide explanations and non-binding interpretations on questions relating to the practical application or implementation of the provisions of legislative acts referred to in Article 1(2) of the EBA’s founding Regulation, as well as associated delegated and implementing acts, and guidelines and recommendations, adopted under these legislative acts.
For further information on the purpose of this tool and on how to submit questions, please see “Additional background and guidance for asking questions”.
- Status
-
Rejected question