The key steps undertaken by PCS in an STS verification may be found in the Procedures Manual, available for downloaded here.
If you are planning to seek an STS verification, we very strongly recommend that you and your legal advisers download the PCS Procedures Manual and become familiar with it.
We strongly advise all visitors to this site to read our “Disclaimer” for a better understanding of the nature of all PCS Labels.
This section sets out briefly the key elements in the procedure for the completion of an STS verification.
Sponsors thinking about seeking an STS verification, whether for a single transaction, a set of transactions or the entire ABCP conduit, are advised to inform PCS as soon as possible, by sending an email to email@example.com (for PCS UK) or firstname.lastname@example.org (for PCS EU) or setting out the outline of the transaction and likely timing.
The sponsor should then download the relevant application form, complete it and return it to email@example.com or firstname.lastname@example.org well before the expected date of certification to ESMA. As the time that will be required to perform any STS verification may vary considerably depending on a constellation of factors, should hold discussions with PCS as early as possible to estimate the necessary timeframe.
To comply with the STS Regulation, PCS will not be able to start work on any transaction without an application form signed by the sponsor.
PCS UK or PCS EU, as the case may be, will then confirm receipt of the form and accept the engagement.
A PCS ABCP Verification Checklist can be downloaded by clicking here.
The applicant and its legal advisers would then draw up a draft documents list setting out all the documents believed to be necessary for PCS to complete a verification of all the STS criteria.
The legal advisers to the transaction will then forward to PCS the draft or final versions of all the documents on the finalised documents’ list as well as the draft originator/sponsor STS certification. PCS will verify that these documents do evidence compliance with the STS requirements in accordance with its rules as set out in the Evidentiary Standards Manual. A copy of the ABCP Evidentiary Standards Manual may be found here.
If an issue arises, PCS will seek to resolve it with the sponsor and their legal advisers but always bearing in mind that, in line with its regulatory obligations and its Code of Conduct, no interaction with an sponsor or its agents can be such as to amount to any form of advice or recommendations. (For more information, the PCS Code of Conduct may be found here).
Once PCS is satisfied that appropriate evidence of compliance with the STS criteria can be found in the relevant documents, it will confirm to the originator or sponsor that, in PCS’ opinion, the transaction meets the STS requirements.
If any part of the documents relevant to the Verification Checklist should change at a later stage, it is the obligation of the originator or sponsor and the legal advisers to the transaction to immediately inform PCS.
Please note that, to comply with our regulatory obligations and to avoid any suggestion of a conflict of interest, the fee is payable by the sponsor from the moment an application is received by PCS and is not dependant (save is some exceptional cases set out in our Terms & Conditions for PCS UK and Terms and Conditions for PCS EU) upon the completion of an STS Verification or the outcome of any verification procedure.
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