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]