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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.

securitisation

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        1. (1) (subject to (2) and (3)) a process by which assets are sold to a bankruptcy-remote special purpose vehicle in return for immediate cash payment and that vehicle raises the immediate cash payment through the issue of debt securities in the form of tradable notes or commercial paper.
        1. (2) (180in BIPRU and MIPRU 4)110 a transaction or scheme whereby the credit risk associated with an exposure or pool of exposures is tranched having the following characteristics:
          1. (a) payments in the transaction or scheme are dependent upon the performance of the exposure or pool of exposures; and
          1. (b) the subordination of tranches determines the distribution of losses during the ongoing life of the transaction or scheme.
          [Note: article 4(36) of the Banking Consolidation Directive (Definitions)]180
        1. (3) (in IFPRU) has the meaning in article 4(1)(61) of the UK CRR180.
        1. (4) (in FEES 4 Annex 16R Part 3, item J.3) has the same meaning as in article 2(1) of the Securitisation Regulation.180