Do the provisions in Article 405(1) of Regulation (EU) No 575/2013 apply to purchased receivables?
Former Article 122a CRD exempted under its paragraph 3 explicitly purchased receivables from the application of its paragraph 1 (retention requirement). Such an exemption is no longer included in Article 405(4) of Regulation (EU) No 575/2013 (CRR) which provides for certain exemptions from the application of Article 405(1) (retention requirement). However recital (58) of the CRR states: "Purchased receivables should not be subject to the retention requirement if they arise from corporate activity where they are transferred or sold at a discount to finance such activity." This is a clear indication that purchased receivables should be exempted from the retention requirement. Therefore we seek clarification by the EBA that purchased receivables are exempted from the retention requirement.
Article 405(1) of Regulation (EU) No 575/2013 shall not apply to purchased receivables except where there is a transaction or scheme that qualifies for the definition of "securitisation" under Article 4(61) and the underlying assets are purchased receivables (such as those of Asset Backed Commercial Paper conduits).
This question goes beyond matters of consistent and effective application of the regulatory framework. A Directorate General of the Commission (Directorate General Financial Stability, Financial Services and Capital Markets Union) has prepared the answer, albeit that only the Court of Justice of the European Union can provide definitive interpretations of EU legislation. This is an unofficial opinion of that Directorate General, which the European Banking Authority publishes on its behalf. The answers are not binding on the European Commission as an institution. You should be aware that the European Commission could adopt a position different from the one expressed in such Q&As, for instance in infringement proceedings or after a detailed examination of a specific case or on the basis of any new legal or factual elements that may have been brought to its attention.
Update 26.03.2021: This Q&A has not yet been reviewed by the European Commission in the light of the changes introduced to Regulation (EU) No 575/2013 (CRR).