n Without Prejudice - Securitisations Schemes' exemption notices : financial law

Volume 8, Issue 6
  • ISSN : 1681-178X



The Exemption Notice defines a synthetic securitisation scheme as a scheme through which an SPI (special purpose institution) issues commercial paper to investors and uses the proceeds primarily to obtain credit-risk exposure relating to an underlying asset, a reference entity, or a reference asset, through the use of funded or unfunded credit-derivative instruments or guarantees, as well as assets that serve as collateral. The SPI makes payments primarily in respect of the commercial paper so issued, or to an institution acting in a secondary role. The payments are made from the cash flows arising from the assets that serve as collateral and from the fees and / or premium paid to the SPI by an institution acting as an originator, remote originator or repackager.

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