16. The techniques of portfolio management that should not be considered active portfolio …

The techniques of portfolio management that should not be considered active portfolio management include:

(a) substitution or repurchase of underlying exposures due to the breach of representations or warranties;
(b) substitution or repurchase of the underlying exposures that are subject to regulatory dispute or investigation to facilitate the resolution of the dispute or the end of the investigation;
(c) replenishment of underlying exposures by adding underlying exposures as substitutes for amortised or defaulted exposures during the revolving period;
(d) acquisition of new underlying exposures during the ‘ramp up’ period to line up the value of the underlying exposures with the value of the securitisation obligations;
(e) repurchase of underlying exposures in the context of the exercise of clean-up call options, in accordance with Article 244(3)(g) of Regulation (EU) 2017/2401;
(f) repurchase of defaulted exposures to facilitate the recovery and liquidation process with respect to those exposures;
(g) repurchase of underlying exposures under the repurchase obligation in accordance with Article 20(13) of Regulation (EU) 2017/2402.

Clear eligibility criteria

1. Overview

Summary	Regulation

Requirements
Source	Requirement

Standards
Source	Requirement