1. The sponsor of the ABCP programme shall be a person who is a CRR firm as defined by Article 4(1)(2A) of the Capital Requirements Regulation, but is not an investment firm as defined by Article 4(1)(2) of that Regulation [Point (2A) was inserted and point (2) was amended by S.I. 2018/1401.].

2. The sponsor of an ABCP programme shall be a liquidity facility provider and shall support all securitisation positions on an ABCP programme level by covering all liquidity and credit risks and any material dilution risks of the securitised exposures as well as any other transaction- and programme-level costs if necessary to guarantee to the investor the full payment of any amount under the ABCP with such support. The sponsor shall disclose a description of the support provided at transaction level to the investors including a description of the liquidity facilities provided.

3. Before being able to sponsor an STS ABCP programme, the credit institution shall demonstrate to the PRA that its role under paragraph 2 does not endanger its solvency and liquidity, even in an extreme stress situation in the market.