Under article 270 of the CRR, a limited class of synthetic securitisations, backed primarily by loans to small and medium enterprises, are entitled to benefit from the lower capital requirements otherwise only available to STS securitisations. To be included in this class, these synthetic securitisations need to meet all the STS criteria – save those concerning the requirements of a “true sale” – as well as a limited number of additional criteria.
PCS will, on request, analyse synthetic securitisations to determine whether, in our opinion, they meet the requirements of article 270 of the CRR.
Protection buyers or investors may, for example, find that a PCS article 270 check is helpful as a check on its internal processes or for discussions and/or checks with its regulators.
The fees for this assessment are broadly the same as for an STS Verification, namely £13,000 or €15,000 upfront and an annual fee of £5,000 or €6,000. For more details, please refer to our fees schedule.
To apply for this service, an originator should send us a completed application form:
To read our terms and conditions for this service, please consult:
The Article 270 Assessment is not a regulated activity. No authorisation is required to perform such an assessment and it is therefore not covered by PCS’ regulatory authorisation either in France or the United Kingdom.
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