The Financial Services and Markets Act 2000 (Excluded Activities and Prohibitions) Order 2014

Securitisation companies and structured finance vehicles: definitions U.K.

3.—(1) In this Order—

(a) “securitisation undertaking” means—

(i) an asset holding company,

(ii) a commercial paper funded company,

(iii) an intermediate borrowing company,

(iv) a note-issuing company, or

(v) a warehouse company; and

(b) “asset holding company”, “commercial paper funded company”, “intermediate borrowing company”, “note-issuing company” and “warehouse company” means a company of the kind mentioned in paragraph (a), (b), (c), (d) or (e) of section 83(2) of the Finance Act 2005 M1 or in paragraph (a), (b), (c), (d) or (e) of regulation 4(2) of the Taxation of Securitisation Companies Regulations 2006 M2 , except that for these purposes—

(i) “company” includes any body corporate, partnership or unincorporated association, and

(ii) the requirements in section 83(3)(b) of the Finance Act 2005 and regulation 5(3) of the Taxation of Securitisation Companies Regulations 2006 shall not apply.

(2) For the purposes of this Order, a structured finance vehicle is a sponsored structured finance vehicle of a ring-fenced body where the only assets held by the structured finance vehicle consist of any of—

(a) money provided by the ring-fenced body or a subsidiary of the ring-fenced body;

(b) assets, or an interest in assets, created by, or otherwise originated by, or comprising claims against, any one or more of the following—

(i) the ring-fenced body,

(ii) a securitisation undertaking, provided that the only assets held by the securitisation undertaking are assets created or otherwise originated by the ring-fenced body or any of its subsidiary undertakings, and assets within sub-paragraphs (c) to (h) below, or

(iii) a subsidiary undertaking of the ring-fenced body, provided that the assets concerned are assets which the ring-fenced body itself could hold;

(c) liquid assets, investments or facilities acquired by or made available to the structured finance vehicle to enable it to limit the extent to which its business may be adversely affected by any of the factors referred to in article 6(2);

(d) sums lent by the structured finance vehicle in connection with a capital market arrangement;

(e) rights arising under derivative instruments entered into with any person for the purpose of the protection of the structured finance vehicle against any difference between any rate, index or price and any other rate, index or price;

(f) rights arising under contracts with the ring-fenced body or with any other person for the provision of services to the structured finance vehicle;

(g) rights arising under a contract with another sponsored structured finance vehicle of the ring-fenced body;

(h) sums derived from any of the assets referred to in sub-paragraphs (a) to (g) above, including rights in relation to any current account, payment account or deposit account to which such sums are credited or paid.

Marginal Citations

M1 2005 c. 7. Section 83 has been amended by the Finance Act 2006 (c.25), s.101; the Finance 2007 (c.11), s. 59 and the Corporation Tax Act 2009 (c.4), schedule 1, Part 2, paragraphs 648, 662.

M2 S.I. 2006/3296.