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 Since the new on-balance-sheet STS regime has come into force though, these Art.270 assessment have been replaced by PCS’ synthetic/on-balance-sheet STS verifications.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.
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