In this Regulation:

1. (a)

   references to “Regulation (EU) No 575/2013” are to be read as references to the version of Regulation (EU) No 575/2013 applicable on 31 December 2018, together with any amendments made to such provisions by the Capital Requirements (Amendment) (EU Exit) Regulations 2018; and

2. (b)

   a reference to a provision of a sourcebook is to a sourcebook in the FCA Handbook of Rules and Guidance made by the FCA under FSMA as amended by rule-making instruments made before 31 December 2018 under FSMA

For the purposes of this Regulation the following definitions apply:

1. (a)

   "retainer" means the entity acting as originator, sponsor or original lender which retains a net economic interest in the securitisation in accordance with Article 405(1) of Regulation (EU) No 575/2013;

2. (b)

   "Synthetic form of retention" means retention of economic interest through the use of derivative instruments;

3. (c)

   "Contingent form of retention" means retention of economic interest through the use of guarantees, letters of credit and other similar forms of credit support ensuring an immediate enforcement of the retention;

4. (d)

   "Vertical tranche" means a tranche which exposes the holder of the tranche to the credit risk of each issued tranche of the securitisation transaction on a pro-rata basis.