(1) Institutions shall ensure that the risks arising from securitisation transactions in relation to which the institutions are investor, originator or sponsor, including reputational risks, such as arise in relation to complex structures or products, are evaluated and addressed through appropriate policies and procedures, to ensure that the economic substance of the transaction is reflected in the risk assessment and management decisions.

(2) Institutions which are originators of revolving securitisation transactions involving early amortisation provisions shall establish and implement liquidity plans to address the implications of both scheduled and early amortisation.

(3) In this Regulation, "originator" has the meaning assigned to it in point (13) of Article 4(1) of the Capital Requirements Regulation.