Process & Key Steps

The key steps undertaken by PCS in an STS verification may be found in the Procedures Manual, available for download here.

If you are planning to seek an STS verification, we very strongly recommend that you and your legal advisers download the Procedures Manual and become familiar with it.

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

This section sets out briefly the key elements in the PCS Procedures Manual for the completion of an STS verification.

Originators or sponsors thinking about seeking an STS verification are advised to inform PCS as soon as possible, by sending an email to [email protected] (for PCS UK) or [email protected] (for PCS EU) setting out the outline of the transaction and likely timing.

The originator or sponsor should then download the relevant application form, complete and return it to [email protected] or [email protected] 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 or the sponsor.

The application form confirms agreement to the terms and conditions of the PCS STS verification which may be found here for PCS UK and here for PCS EU.

PCS UK or PCS EU, as the case may be, will then confirm receipt of the form and accept the engagement.

A PCS Verification Checklist (Term) can be downloaded by clicking here.

The applicant and its legal advisers would then draw up a draft documents list setting out all the documents believed to be necessary for PCS to complete a verification of all the STS criteria.

The legal advisers to the transaction will then forward to PCS the draft or final versions of all the documents on the finalised documents’ list as well as the draft originator/sponsor STS notification. PCS will verify that these documents do evidence compliance with the STS requirements in accordance with its rules as set out in the Evidentiary Standards Manual. A copy of the Evidentiary Standards Manual for Term transactions may be found here.

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 or its agents can be such as to amount to any form of advice or recommendations. (For more information, the PCS Code of Conduct may be found here).

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

If any part of the documents relevant to the Verification Checklist should change at a later stage, it is the obligation of the originator or sponsor and the legal advisers to the transaction to immediately inform PCS.

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 dependant (save is some exceptional cases set out in our Terms & Conditions for PCS UK and Terms and Conditions for PCS EU) upon the completion of an STS Verification or the outcome of any verification procedure.

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 >
    • Evidentiary Standards Manual (Term) More >
    • Evidentiary Standards Manual (ABCP) More >
    • STS Verifications and PCS Assessment Procedures Manual More >
    • Code of Conduct More >