Entire Section

  • Transfers to Special Purpose Entities (SPEs)

    • PIB 4.14.63

      An Authorised Firm need not include in its calculation of Capital Resources or Credit RWA amounts, assets transferred to:

      (a) an SPE; or
      (b) any Person, if the transfer is in connection with a securitisation under which the Issuer of the Securities is an SPE;

      provided that:

      (c) the Authorised Firm does not own any share or proprietary interest in the SPE;
      (d) no more than one member of the Governing Body of the SPE is an officer, partner, or Employee of the Authorised Firm;
      (e) the SPE does not have a name that implies any connection with the Authorised Firm or any other member of the Authorised Firm's Group;
      (f) the Authorised Firm does not fund the SPE except where permitted under the requirements for Credit Enhancement below;
      (g) the Authorised Firm does not provide temporary finance to the SPE to cover cash shortfalls arising from delayed payments or non-performance of loans transferred except where it meets the requirements for liquidity support below;
      (h) the Authorised Firm does not bear any of the recurring expenses of the SPE; and
      (i) any agreements between the Authorised Firm and the SPE are at market rates and at arm's length.
      Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]

    • PIB 4.14.64

      Where an Originator acts as Underwriter for the Securities issued, the underlying items will not be regarded as being transferred until 90% of the total issuance has been sold to third parties.

      Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]