TSI certification

Quality standards

TSI certification

CERTIFIED BY TSI

The high quality of German securitisation transactions is reflected in the standards of lending and loan processing. This is what the CERTIFIED BY TSI - DEUTSCHER VERBRIEFUNGSSTANDARD certificate stands for. The DEUTSCHER VERBRIEFUNGSSTANDARD brand is built on clearly defined rules for transparency, disclosure, lending and loan processing. These are the advantages for the users of the certification:

  • High transparency for investors through detailed guidelines and templates for investor reporting.
  • Exclusion of the ‘originate to distribute’ problem: The originator assures in a declaration of undertaking to follow clear rules for the granting and processing of loans as well as for the incentive systems of its sales and back-office operations. This ensures that securitised exposures and those that remain on the balance sheet are subject to the same lending and processing guidelines.
  • Free access to relevant transaction information: the Offering Circular, the declaration of undertaking and all investor reports are published on our websites.

Procedure of the certification process

The TSI certification process follows a standardised procedure in nine steps. A lead time of approximately two months is estimated for the certification process before the closing of the transaction. In the case of a ‘frequent issuer’ or less complex transaction structures, the lead times may be shorter. In cases where a German SPV is used, the certification can be commissioned with TSI together with the establishment of the special purpose vehicle.

 

 

 

Specifically, the following steps apply:

1. The client contacts TSI

  • All relevant certification information and certification documents are sent to the potential client.
  • The certification process is explained and all questions are clarified in a personal meeting
  • The client sends the application for certification to TSI

2. TSI is commissioned to certify a securitisation transaction

  • In the application for certification, the client undertakes to comply with the quality criteria of the CERTIFIED BY TSI - DEUTSCHER VERBRIEFUNGSSTANDARD brand.
  • The application for certification signed by the client forms the basis for the initiation of the certification process.

3. Kick-off meeting between client and TSI

  • Any open points are clarified
  • A uniform understanding with regard to the underlying transaction structure and its specifics is agreed upon
  • A timeframe for the certification process is established

4. Review of the relevant transaction documents

  • Special features of the transaction structure (e.g. waterfall, trigger events, etc.) are identified from the prospectus and requirements for the draft investor report are defined

5. Coordination of investor reporting

  • This is coordinated in several iterations between the client and TSI
  • Comparison of whether the definitions in the issuing prospectus are identical to those in the investor report
  • The agreed draft investor report forms the basis for the regular publication of the investor report on the TSI website

6. Provision of the client’s declaration of undertaking

  • In the declaration of undertaking submitted by the client within the framework of TSI certification, the client undertakes to TSI that it will comply with the quality criteria of the CERTIFIED BY TSI - DEUTSCHER VERBRIEFUNGSSTANDARD brand over the entire term of the transaction

7. Certification meeting between client and TSI

  • On the basis of the declaration of undertaking and the other certification documents, a final certification meeting takes place between the client and TSI
  • In the course of this meeting, any open points or questions regarding compliance with the quality criteria are finally discussed and documented by TSI

8. TSI issues the certificate

  • TSI issues the certificate within the framework of an overall assessment.
  • TSI hands over the letter of acceptance for the use of the certificate as well as the General Certification Conditions to the client.

9. Inclusion of the transaction on the TSI website

  • A separate page is created for the certified transaction
  • The relevant transaction documents (offering circular, presale and new issue reports of the rating agencies) are posted
  • The investor reports are posted (xls and pdf format) over the term of the transaction

Certifying your own securitisation

Do you have questions about a planned securitisation transaction? Are you thinking about using TSI certification or SVI verification for your transaction? Please get in touch, we will be happy to help!

Peter Grijsen

Associate Director

+49 69 2992 1726
peter.grijsen@tsi-gmbh.de

Mario Uhrmacher

Director | Managing Director TSI Services

+49 69 2992 1721
mario.uhrmacher@tsi-gmbh.de