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Recital 3

Recital 3

(3)The application of SEC-IRBA as per the approach for the purchased receivables referred to in Article 255(4) of Regulation (EU) No 575/2013 should only be available for certain qualifying securitised exposures in relation to which institutions have limited control or access to information and data, or both, and, as a result of which institutions are unable to directly apply the provisions set out in Part Three, Title II, Chapter 3, of Regulation (EU) No 575/2013 to those exposures without the necessary adjustments. It should be considered that there is limited access to information and data on the securitised exposures where the institution is not servicing all those exposures, including the situation where the institution is either an investor in securitisation positions or a sponsor or an originator retaining securitisation positions in a securitisation transaction, and does not service all of the underlying exposures of that transaction. That may also be the case where the institution calculating K IRB is the servicer of the securitisation, but was not involved in, or did not conclude, the original agreement that created the obligations or potential obligations giving rise to the securitised exposures. However, in securitisations with multiple originators, each originator retaining a securitisation position in the securitisation might be able to calculate K IRB with respect to the securitised exposures it has contributed to the securitisation , in accordance with Part Three, Title II, Chapter 3, of Regulation (EU) No 575/2013. Therefore, originators should also be able to calculate K IRB by applying that Chapter for exposures other than purchased receivables to the securitised exposures those originators service and in relation to which they were involved in the execution of the original agreement that created the obligations or potential obligations of the debtor or potential debtor giving rise to the securitised exposures.

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