1.An institution calculating KIRB may, for non-retail qualifying securitised exposures, use the risk quantification standards for retail exposures laid down in Part Three, Title II, Chapter 3, Section 6, of Regulation (EU) No 575/2013 where all of the following conditions are met:
(a)it would be unduly burdensome for the institution to use the risk quantification standards for corporate exposures laid down in Part Three, Title II, Chapter 3, Section 6, of Regulation (EU) No 575/2013;
(b)the following requirements are met, instead of the requirements laid down in Article 154(5), points (a) to (d), of Regulation (EU) No 575/2013:
(i)the SSPE or the institution calculating KIRB has purchased the non-retail qualifying securitised exposures from third-party originators or sellers unrelated to the institution calculating KIRB, and the exposure of the SSPE or the institution calculating KIRB to the obligors in the pool of qualifying securitised exposures does not include any exposures that are directly or indirectly originated by the institution calculating KIRB
(ii)the non-retail qualifying securitised exposures have been generated on an arm’s-length basis between the originator or seller and the obligor and, accordingly, do not contain inter-company accounts receivables and receivables subject to contra-accounts between firms that buy and sell to each other;
(iii)the SSPE or the institution calculating KIRB has a claim on all or part of the proceeds from the non-retail qualifying securitised exposures or a pro-rata interest in the proceeds;
(iv)the pool of qualifying securitised exposures is sufficiently diversified.