CRR Assessment

What is a CRR Assessment?

A benefit of a securitisation being STS is that it allows European banks investing in such a securitisation to allocate a lower amount of capital against that position than would otherwise be required of a non-STS securitisation.  This provision is set out in the Capital Requirements Regulation (Regulation (EU) 2017/2401).

However, in order for this benefit to be available a securitisation must not only be STS but also meet an additional 4 criteria.

In addition to an STS verification, PCS will provide a CRR assessment in which it will address these additional 4 criteria.

The CRR assessment operates in the same manner as the STS verification: PCS will complete a checklist containing the additional 4 points based on documentation provided by, or on behalf, of the originator or sponsor.

We strongly advise all visitors to this site to read our “Disclaimer” for a better understanding of the nature of all PCS Labels.

How to engage PCS for a CRR Assessment?

In order to meet regulatory requirements, it is not possible for an originator or sponsor to engage PCS only for a CRR assessment without engaging PCS for an STS verification of the same transaction.

As a CRR assessment is always part of an STS verification, application for a CRR assessment is made by ticking the CRR assessment box in either the Application Form for an STS Verification and Assessment for PCS UK, or the Application Form for an STS Verification and Assessment for PCS EU, as appropriate.

Fees

The fees for a CRR assessment shall be payable in Euros or Pounds Sterling depending on the currency in which the securities are denominated.

The STS regulations do not allow the fees payable to third party verification agents to be dependent on the result of the verification activities.  This includes the fees for any ancillary activities such as CRR assessments. Therefore originators and sponsors must bear in mind that the fees become payable on the receipt of an application form and acceptance by PCS of the engagement and (save in certain exceptional circumstances detailed in the PCS Terms & Conditions) irrespective of whether the STS Verification or CRR assessment is completed.

The CRR assessment fee, if denominated in Euros is: €1,000 + VAT (if applicable)

The  CRR assessment fee, if denominated in GBP is:   £1,000 + VAT (if applicable)

There is no annual maintenance fee.

The fees are set by PCS UK and PCS EU on a group wide basis to meet the expenses of running the PCS initiative. No money is paid by way of dividend to any shareholders or members of the PCS Association (PCS UK’s and PCS EU’s parent) and the PCS initiative as a whole is run on a not-for-profit basis.

 

Further information

    • Application Form for an STS Verification and Assessment for PCS UK more >
    • Application Form for an STS Verification and Assessment for PCS EU more >
    • PCS UK Terms & Conditions more >
    • PCS EU Terms & Conditions more >
    • STS Verifications and PCS Assessment Procedures More >
    • Code of Conduct More >