EBA Q&A 2013_567: Column “OVERALL EFFECT (ADJUSTMENT) DUE TO INFRINGEMENT OF THE DUE DILIGENCE PROVISIONS” to be reported only from investor institutions. C 12.00 – Credit Risk: Securitisation - Standardised Approach to Own Funds Requirements (CR SEC SA)

Column “OVERALL EFFECT (ADJUSTMENT) DUE TO INFRINGEMENT OF THE DUE DILIGENCE PROVISIONS” to be reported only from investor institutions. C 12.00 – Credit Risk: Securitisation - Standardised Approach to Own Funds Requirements (CR SEC SA)

EBA Q&A 2013_567 · Final Q&A

Question

Why is the column “OVERALL EFFECT (ADJUSTMENT) DUE TO INFRINGEMENT OF THE DUE DIL-IGENCE PROVISIONS” not shown greyed for the rows concerning Sponsor and Originator?

Background on the question

According to article 407 CRR this effect is only possible for investor institutes.

Answer

Column 350 of CR SEC SA (C 12.00) template shall be left open for sponsors, original lenders and originators. According to Article 407 of Regulation (EU) No 575/2013 (CRR), an additional risk weight may not only be imposed to investor institutions, but also to originators, sponsors and original lenders, if they do not meet the requirements in Articles 405, 406 or 409 of CRR.