Art. 270 Assessment

From January 1st 2019 until April 9th 2021, under article 270 of the CRR, a limited class of synthetic securitisations, backed primarily by loans to small and medium enterprises, were entitled to benefit from the lower capital requirements otherwise only available to STS “true-sale” securitisations.  To be included in this class, these synthetic securitisations needed to meet all the STS criteria – save those concerning the requirements of a “true sale” – as well as a limited number of additional criteria.

Whilst the “Article 270” regime was in force, PCS was able to provide Art.270 assessments.  Since the new on-balance-sheet STS regime has come into force though, these Art.270 assessment have  been replaced by PCS’ synthetic/on-balance-sheet STS verifications.

We only mention Art.270 Assessments for historical purposes, should someone enquire as to their nature.