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.

Article 2 Homogeneity factors

  1. (1)

    The homogeneity factors for the asset type referred to in Article 1(a)(i) shall be the following:

    1. (a)

      ranking of security rights, whereby the pool of underlying exposures consists of only one of the following:

      1. (i)

        loans secured by first ranking security rights on a residential immovable property;

      2. (ii)

        loans secured by lower and all prior ranking rights on a residential immovable property;

      3. (iii)

        loans secured by lower ranking security rights on a residential immovable property;

    2. (b)

      type of residential immovable property, whereby the pool consists of only one of the following types:

      1. (i)

        income-producing properties;

      2. (ii)

        non-income producing properties;

    3. (c)

      jurisdiction, whereby the pool consists of exposures secured by residential immovable properties located in the same jurisdiction.

  2. (2)

    The homogeneity factors for the asset type referred to in Article 1(a)(ii) shall be the following:

    1. (a)

      ranking of security rights, whereby the pool consists of only one of the following types of underlying exposures:

      1. (i)

        loans secured by first ranking security rights on a commercial immovable property;

      2. (ii)

        loans secured by lower and all prior ranking rights on a commercial immovable property;

      3. (iii)

        loans secured by lower ranking security rights on a commercial immovable property;

    2. (b)

      type of immovable commercial property, whereby the pool consists of only one of the following types:

      1. (i)

        office buildings;

      2. (ii)

        retail space;

      3. (iii)

        hospitals;

      4. (iv)

        storage facilities;

      5. (v)

        hotels;

      6. (vi)

        industrial properties;

      7. (vii)

        other specific type of commercial immovable properties;

    3. (c)

      jurisdiction, whereby the pool consists of underlying exposures secured by properties located in the same jurisdiction.

  3. (3)

    The homogeneity factors for the asset type referred to in Article 1(a)(iv) shall be the following:

    1. (a)

      type of obligor, whereby the pool consists of only one of the following types of obligors:

      1. (i)

        micro-, small- and medium-sized enterprises;

      2. (ii)

        other types of enterprises and corporates;

    2. (b)

      jurisdiction, whereby the pool consists of only one of the following types of underlying exposures:

      1. (i)

        exposures secured by immovable property located in the same jurisdiction;

      2. (ii)

        exposures to obligors with residence in the same jurisdiction.

  4. (4)

    The homogeneity factors for the asset type referred to in Article 1(a)(v) shall be the following:

    1. (a)

      type of obligor, whereby the pool consists of underlying exposures with only one of the following types of obligors:

      1. (i)

        individuals;

      2. (ii)

        micro-, small- and medium-sized enterprises;

      3. (iii)

        other types of enterprises and corporates;

      4. (iv)

        public sector entities;

      5. (v)

        financial institutions;

    2. (b)

      jurisdiction, whereby the pool consists of underlying exposures to obligors with residence in the same jurisdiction.

  5. (5)

    The homogeneity factors for the asset type referred to in Article 1(a)(vi) shall be the following:

    1. (a)

      type of obligor, whereby the pool consists of underlying exposures with only one of the following types of obligors:

      1. (i)

        individuals;

      2. (ii)

        micro-, small- and medium-sized enterprises;

      3. (iii)

        other types of enterprises and corporates;

      4. (iv)

        public sector entities;

      5. (v)

        financial institutions;

    2. (b)

      jurisdiction, whereby the pool consists of underlying exposures to obligors with residence in the same jurisdiction.

  6. (6)

    The homogeneity factors for the asset type referred to in Article 1(a)(viii) shall be any of the following:

    1. (a)

      type of obligor;

    2. (b)

      ranking of security rights;

    3. (c)

      type of immovable property;

    4. (d)

      jurisdiction.