STS Verification International GmbH

About STS Verification International GmbH

STS Verification International GmbH (SVI) is a third party verifier authorised under Article 28 of the Securitisation Regulation since 7 March 2019 to verify securitisation transactions for compliance with the ‘simple, transparent and standardised (STS)’ criteria. Since then, SVI has successfully verified more than 100 transactions (as on November 2021) in more than 15 countries and is currently working on an additional 20 transactions across all asset classes that are potentially eligible for STS across the EU.

The objective of SVI’s business activity is to conduct a neutral and objective review of the STS criteria for securitisation transactions as a third party in accordance with the Securitisation Regulation. SVI is strictly limited to this activity and all bodies of the company are required to comply with the Securitisation Regulation and all related legal acts. Due to the selected structure, there is a clear and consistent framework for SVI to act with integrity and independence - this is ensured in particular by an independent management and by the independent members of the company's Supervisory Board.

Scope of Verification

As a third-party verifier authorised and supervised by BaFin, SVI uses a standardised procedure to verify the following types of transactions whether securitisations meet the STS criteria according to the Securitisation Regulation:

• Term ABS transactions (Articles 19 to 22 of the Securitisation Regulation for non-ABCP securitisations,)
• ABCP securitisations (Articles 23 to 26)
• Synthetic on-balance sheet securitisation (Articles 26a to 26e)

for all countries of the European Union involving all asset classes that are potentially eligible for STS.
 

The verification process is based on a thorough analysis of the transaction under review. Additionally, for the verification of an ABCP Programme, a detailed analysis of the relevant aspects of the sponsor and the programme-level requirements is carried out. All relevant elements of the Securitisation Regulation, the EBA Guidelines and the relevant RTS/ITS form part of the verification. Due to the partial referencing of STS Criteria to those criteria which are valid for all securitisations (e.g. Articles 6 and 7 of the Securitisation Regulation), these are also reviewed to a certain extent. In addition to compliance with transparency requirements, the requirements for the originator, the requirements for the portfolio to be securitised and the requirements for the transaction parties and the transaction structure are also reviewed.

The result of the verification is summarised in an STS verification report, which is made publicly available to the client, investors and other market participants on the SVI website unless privacy requirements preclude this.

The verification process involves the review of transaction-specific and company-related documents and records and includes on-site or virtual due diligence meetings.

Additional Services 

Since early 2021 SVI has also been able to perform additional services including:

• CRR assessments
• LCR assessments
• Article 270 assessments
• Gap analyses

Here you find detailed information concerning these services.

Structure and Organisation

STS Verification International GmbH is a 100% subsidiary of True Sale International GmbH (TSI). SVI's mission as part of the TSI Group is to contribute to a well-developed, high-quality and sustainable securitisation market in Europe and to facilitate securitisation transactions for originators and investors. With its work, it intends to make a significant contribution to ensure that best market practices are applied to STS securitisations for the eligible asset classes.

Legal and economic expertise and the many years of experience of the persons working at SVI and its outsourcing partners guarantee an efficient and transparent verification process.