Under the terms of the STS Regulation, the European Banking Authority is required to publish guidelines and recommendations regarding the interpretation of STS ABCP criteria.  Although these are not legally binding on the various national competent authorities who have the final say on the meaning of any STS criteria (short of a legal challenge in the courts), they are likely to be followed by most, if not all, national regulators.  Familiarity with these EBA guidelines is therefore essential for anyone seeking to ascertain the STS status of any ABCP conduit or transaction within such conduit.

PCS will, of course and in the absence of contradictory interpretation from any national competent authority explicitly superseding such guideline, be following these guidelines in analysing STS verifications.

A copy of these guidelines can be found here the EBA’s website is: eba.europa.eu.