Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

FUND 3.5 Investment in securitisation positions

FUND 3.5.1 G


FUND 3.5.2 G


FUND 3.5.3 G



FUND 3.5.4 R

1This section applies to a full-scope UK AIFM of:

  1. (1)

    a UK AIF; and2

  2. (2)

    a non-UK AIF.2

  3. (3)


Corrective action

FUND 3.5.5 R

1Where an AIFM is exposed to a securitisation that does not meet the requirements provided for in the Securitisation Regulation, it must, in the best interests of the investors in the relevant AIFs, act and take corrective action, if appropriate.

[Note: article 17 of AIFMD]

FUND 3.5.6 G

1Article 41 of the Securitisation Regulation replaced2 the original article 17 of AIFMD with an amended provision. FUND 3.5.4R and 3.5.5R implemented2 article 17 of AIFMD, as amended.

FUND 3.5.7 G

1A more general consequence of the replacement of article 17 of AIFMD is that from 1 January 2019, Section 5 (Investment in Securitisation Positions) of the AIFMD level 2 regulation no longer applies, subject to transitional provisions. Where the transitional provisions are inapplicable, article 5 (Due-diligence requirements for institutional investors) of the Securitisation Regulation (in combination with FUND 3.5.4R and 3.5.5R), completely replaces Section 5 (articles 50 to 56 inclusive) of the AIFMD level 2 regulation.

FUND 3.5.8 G

1The relevant transitional provisions apply to certain securitisations issued during periods before 1 January 2019. They are set out in articles 43(5) and 43(6) of the Securitisation Regulation. Where the transitional provisions apply, they have the effect that article 51 of the AIFMD level 2 regulation, concerning requirements for retained interest, and the due-diligence requirements provided for in Section 5 of that regulation, may continue to apply to eligible securitisations, instead of article 5 of the Securitisation Regulation.