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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.

ANNEX I Table 1: System of Accounts Secure Codes Table 2: Servicer Watchlist Codes Table 3: Item types and codes

Table 1: System of Accounts Secure Codes

Sectors

Sub-sectors

SA Code

Non-financial corporations

Public non-financial corporations

S.11001

National private non-financial corporations

S.11002

Foreign controlled non-financial corporations

S.11003

Monetary financial institutions (MFIs)

Central bank

S.121

Public deposit-taking corporations except the central bank

S.12201

National private deposit-taking corporations except the central bank

S.12202

Foreign controlled deposit-taking corporations except the central bank

S.12203

Public money market funds (MMFs)

S.12301

National private money market funds (MMFs)

S.12302

Foreign controlled money market funds (MMFs)

S.12303

Financial corporations except MFIs and Insurance corporations and pension funds (ICPFs)

Public non-MMF investment funds

S.12401

National private non-MMF investment funds

S.12402

Foreign controlled non-MMF investment funds

S.12403

Public other financial intermediaries, except insurance corporations and pension funds

S.12501

National private other financial intermediaries, except insurance corporations and pension funds

S.12502

Foreign controlled other financial intermediaries, except insurance corporations and pension funds

S.12503

Public financial auxiliaries

S.12601

National private financial auxiliaries

S.12602

Foreign controlled financial auxiliaries

S.12603

Public captive financial institutions and money lenders

S.12701

National private captive financial institutions and money lenders

S.12702

Foreign controlled captive financial institutions and money lenders

S.12703

ICPFs

Public insurance corporations

S.12801

National private insurance corporations

S.12802

Foreign controlled insurance corporations

S.12803

Public pension funds

S.12901

National private pension funds

S.12902

Foreign controlled pension funds

S.12903

Other

General government

S.13

Central government (excluding social security funds)

S.1311

State government (excluding social security funds)

S.1312

Local government (excluding social security funds)

S.1313

Social security funds

S.1314

Households

S.14

Employers and own-account workers

S.141+S.142

Employees

S.143

Recipients of property and transfer income

S.144

Recipients of property income

S.1441

Recipients of pensions

S.1442

Recipients of other transfers

S.1443

Non-profit institutions serving households

S.15

Member States of the European Union

S.211

Institutions and bodies of the European Union

S.212

Non-member countries and international organisations non-resident in the European Union

S.22

Table 2: Servicer Watchlist Codes

Servicer Watchlist Code

Meaning

Inclusion Threshold

Release Threshold

1A

Delinquent P&I payment

2 payments behind

Arrears cleared and loan is current. Remain on Watchlist for 2 quarters/periods

1B

Delinquent insurance renewal or forced placed coverage

30 days overdue

Receipt of proof of satisfactory insurance

1C

Interest Coverage Ratio below dividend trap.

Interest Coverage Ratio < required loan covenant (cash trap or default level);

Interest Coverage Ratio < 1.00 on a loan by loan basis

Interest Coverage Ratio above threshold

1D

Debt Service Coverage Ratio absolute level

Debt Service Coverage Ratio < 1.00;

Debt Service Coverage Ratio < 1.20 for healthcare and lodging;

or on a loan by loan basis

Debt Service Coverage Ratio above threshold

1E

Debt Service Coverage Ratio decreases from "Securitisation Date"

Debt Service Coverage Ratio < 80 % of the "Securitisation Date" Debt Service Coverage Ratio

Debt Service Coverage Ratio above threshold. Remain on Watchlist for 2 quarters/periods

1F

Defaulted, matured, or discovery of previous undisclosed subordinate lien including mezzanine loan.

When notice received by servicer

Default has been cured or subordinate debt approved by servicer

1G

Any unplanned draw on a letter of credit, debt service reserve, or working capital to pay debt service

Any occurrence on a loan by loan basis.

After funds or Letter of Credit replaced if required by the documents otherwise after two Interest Payment Dates with no further draws

2A

Absolute required repairs reserved for at closing, or otherwise disclosed to servicer, but not completed by due date

If required repair is not completed with 60 days following the due date (including extensions approved by the Servicer) and it is the lesser of 10 % of the unpaid principal balance or €250,000

Satisfactory verification that repairs have been completed

2B

Any required spending plan deficiencies (i.e.: capex, FF&E)

Any knowledge of deficiency that adversely affects the performance or value of property; on a loan by loan basis/material (> 5 % of loan outstanding balance)

When plan deficiencies are cured

2C

Occurrence of any trigger event in the mortgage loan documents. (e.g. required loan pay down, posting of additional reserves, minimum thresholds breached, etc.)

Any occurrence

Cure of the event that required action under the mortgage documents

2D

Verification of financial performance. Unsatisfactory or non-delivery of tenancy schedules or operating statements, etc.

Any occurrence for 6 months or greater

Cure of the event that required action under the mortgage documents

2E

Operating licence or franchise agreement default

When notice received by servicer

New franchise or licence in place, or default under franchise or licence has been cured - Relationship agreement

2F

Borrower/owner/sponsor bankruptcy or similar event (e.g. insolvency arrangement/proceedings, bankruptcy, receivership, liquidation, company voluntary arrangement (CVA)/individual voluntary arrangement (IVA)), becomes the subject of winding up order bankruptcy petition or other.

When notice received by servicer

Retain on Watchlist until Interest Payment Date following cure.

3A(i)

Inspection reveals poor condition

Any occurrence on a loan by loan basis/material 5 % > of net rental income (NRI)

In Servicer's discretion that property deficiencies cured or access allowed and inspection completed

3A(ii)

Inspection reveals poor accessibility

Any occurrence on a loan by loan basis/material 5 % > of net rental income (NRI)

In Servicer's discretion that property deficiencies cured or access allowed and inspection completed

3B

Inspection reveals harmful environmental issue

Any occurrence

In Servicer's discretion that property deficiencies cured

3C

Properties affected by major casualty or compulsory purchase proceeding affecting future cash flows, value/blight/caution.

When servicer becomes aware of issue and it affects > 10 % of value or €500,000

In Servicer's discretion that all necessary repairs have been completed satisfactorily or that condemnation proceedings have been completed and the asset can perform satisfactorily

4A

Overall property portfolio occupancy decrease

20 % less than "Securitisation Date" level; on a loan by loan basis

When condition no longer exists

4B

Any 1 tenant or combination of TOP 3 TENANTS (based on gross rental) with leases > 30 % expiring within the next 12 months.

Only applies to office, industrial and retail.

When condition no longer exists or Servicer's discretion.

4C

Major tenant lease or leases that are in default, terminated or are dark (Not occupied, but rent being paid)

> 30 % Net Rental Income

When condition no longer exists, or Servicer's discretion.

5A

Pending loan maturity

< 180 days until maturity

Loan is paid off.

Table 3: Item types and codes

Item type

Article(s) of Regulation (EU) 2017/2402

Item code

Underlying exposures or underlying receivables or credit claims

7(1)(a)

1

Investor report

7(1)(e)

2

Final offering document; prospectus; closing transaction documents, excluding legal opinions

7(1)(b)(i)

3

Asset sale agreement; assignment; novation or transfer agreement; any relevant declaration of trust

7(1)(b)(ii)

4

Derivatives and guarantees agreements; any relevant documents on collateralisation arrangements where the exposures being securitised remain exposures of the originator

7(1)(b)(iii)

5

Servicing; back-up servicing; administration and cash management agreements

7(1)(b)(iv)

6

Trust deed; security deed; agency agreement; account bank agreement; guaranteed investment contract; incorporated terms or master trust framework or master definitions agreement or such legal documentation with equivalent legal value

7(1)(b)(v)

7

Inter-creditor agreements; derivatives documentation; subordinated loan agreements; start-up loan agreements and liquidity facility agreements

7(1)(b)(vi)

8

Any other underlying documentation that is essential for the understanding of the transaction

7(1)(b)

9

Simple, transparent and standardised notification pursuant to Article 27 of Regulation (EU) 2017/2402

7(1)(d)

10

Inside information relating to the securitisation that the originator, sponsor or SSPE is obliged to make public in accordance with Article 17 of Regulation (EU) No 596/2014 of the European Parliament and of the Council

7(1)(f)

11

A significant event, such as:

(i) a material breach of the obligations provided for in the documents made available in accordance with Article 7(1)(b) of Regulation (EU) 2017/2402, including any remedy, waiver or consent subsequently provided in relation to such a breach;

(ii) a change in the structural features that can materially impact the performance of the securitisation;

(iii) a change in the risk characteristics of the securitisation or of the underlying exposures that can materially impact the performance of the securitisation;

(iv) in the case of STS securitisations, where the securitisation ceases to meet the STS requirements or where the competent authority has taken remedial or administrative actions;

(v) any material amendment to transaction documents.

7(1)(g)

12