(13)According to Article 154(5) of Regulation (EU) No 575/2013, for purchased receivables to be eligible for the retail treatment laid down in paragraph 1 of that Article, it is inter alia necessary that the institution purchases those receivables from unrelated third parties, that the exposure of the institution to the obligor of the receivables does not include any exposures that are directly or indirectly originated by the institution itself, that the purchased receivables are generated on an arm's-length basis between the seller and the obligor, and that the portfolio is sufficiently diversified. Those requirements should be tailored to qualifying securitised exposures. It is therefore appropriate to require that institutions calculating K IRB verify that the securitised exposures are purchased from unrelated third parties, are not directly or indirectly originated by the institution calculating K IRB , and are generated on an arm’s-length basis.