On Balance Sheet (Synthetic) Verification

Process & Key Steps

This section sets out the key elements for the completion of an STS verification for an on-balance-sheet (synthetic) transaction.
We strongly advise all visitors to this site to read our Disclaimer below for a better understanding of the nature of a PCS Verification.

At the heart of a PCS verification lies the checking of all STS criteria off our Master Checklist

1. Pre-Mandate

You can talk to the Market Outreach Team about technical and commercial matters
You can talk o The Analytical Team about generic technical matters
In certain limited circumstances you can an about your deal  

2. Mandate - At Least 2 Weeks Before Checklist Is Required

PCS mandated
Fee for verification is due regardless of outcome
An analyst assigned to the transaction
A second analyst checks - 4 eyes principal

3. Preliminary Chcecklist

Document drafts are checked against the STS/CRR/LCR criteria
Analyst provide preliminary checklist
Usually at start marketing phase
Can be used as marketing materia

4. Closing

Final documentary check is completed Final PCS checklist is provided and published on PCS can be named in ESMA notification Upfront payment is due

The originator should then fill the online application form and submit it  well before the expected date of notification to ESMA. As the time that will be required to perform any STS verification may vary considerably depending on a constellation of factors, the applicant 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 originator.

To fill in the application form, you can access our online application function directly from the button on the top of this page.

As the United Kingdom legislation does not allow synthetic securitisations to benefit from STS status, only PCS EU is able to verify transactions and only EU transactions may qualify for verification.

FEES
EU
UK
Upfront
Fee Amount
Deferred
Fee Amount
Upfront
Fee Amount
Deferred
Fee Amount
On Balance Sheet (Synthetic) STS Verification
€ 20,000
€ 6,000
NA
NA

 *These fees are the base fees for an on-balance-sheet securitisation verification.  PCS' fees may benefit from caps and exemptions.  For a full understanding of our fees, please consult our Fees Schedule. Where applicable VAT will be added to these fees.

A PCS on-balance-sheet securitisation verification consists of the verification of each STS criterion using as guide and template the PCS Master Checklist.  The On-Balance-Sheet Master Checklist can be downloaded at the bottom of this page.

If an issue arises, PCS will seek to resolve it with the originator 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 originator, 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.

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 that, in PCS’ opinion, the transaction meets the STS requirements.

PCS has been authorised to perform STS verifications both throughout the European Union by the French Autorité des Marchés Financiers.

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 originator from the moment an application is received by PCS and is not dependent (save is some exceptional cases set out in our terms and conditions - PCS EU) upon the completion of an STS Verification or the outcome of any verification procedure.

STS Master Checklist

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