»Ê¹ÚÌåÓýapp

Regulation 2: terms used in the regulations

Regulation 2 provides definitions of terms used in the regulations.

Types of securitisation company

»Ê¹ÚÌåÓýapp definitions of the five types of ‘securitisation companyâ€� are set out in Regulations 4 to 9 (CFM72370). »Ê¹ÚÌåÓýappse are termed as the

• note-issuing company
• asset-holding company
• intermediate borrowing company
• warehouse company
• commercial paper funded company.

Capital market arrangement

Capital market arrangement and capital market investment take their meanings from the Insolvency Act 1986 - see CFM72300.

‘Independent persons�

»Ê¹ÚÌåÓýapp securities must be issued to ‘independent personsâ€�, which draws on the definition of ‘connected personsâ€� in CTA10/S1122. See CFM72390.

‘Related transaction�

Regulation 2 also explains the meaning of ‘related transaction�. This is relevant to the ‘unallowable purposes� test (see CFM72570) and to the definition of ‘retained profit� (see CFM72480).

‘Financial assets�

»Ê¹ÚÌåÓýapp assets held by certain of the above types of securitisation company must be ‘financial assetsâ€�. CFM72350 explains this term.

‘Specified regulations�

»Ê¹ÚÌåÓýapp ‘specified regulationsâ€� are Regulation 14 (the corporation tax charge), 14A (removal of withholding obligation), Regulations 16 to 20 and 22 (which modify certain tax rules). »Ê¹ÚÌåÓýappse particular regulations do not apply to securitisation companies in certain circumstances (CFM72500).