On December 4, the UK Securitization Regulations 2018 (UK Regulations) were published, together with an explanatory memorandum.
The UK Regulations reflect the application of the EU Securitization Regulation in the UK. The EU Securitization Regulation harmonizes and reforms existing rules on due diligence, risk retention and disclosure for securitizations, securitizing entities and EU regulated institutional investors. It also creates a new framework for simple, transparent and standardized securitizations and asset-backed commercial paper programs.
Among other things, the UK Regulations designate the UK Financial Conduct Authority and Prudential Regulation Authority as the competent authorities in relation to the EU Securitization Regulation. The UK Regulations amend
the Financial Services and Markets Act 2000 and other UK legislation, to create the new supervisory, investigative and sanctioning powers required by the EU Securitization Regulation.
The UK Regulations will become effective on January 1, 2019, to coincide with the EU Securitization Regulation.
The UK Regulations are available here.
The accompanying explanatory memorandum is available here