FCA and PRA Publish Direction on Reporting Private Securitizations Under Securitization Regulation
On January 31, the UK Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) published a direction under the UK Securitization Regulations 2018 (a statutory instrument that implements the EU Securitization Regulation) setting out how relevant parties must report certain information to the FCA or PRA.
The requirements relate to private securitizations, which are securitizations where no prospectus has to be drawn up in compliance with the Prospectus Directive. The direction sets out when and in what manner relevant information must be sent to the FCA or PRA (as the case may be) for:
- Private securitizations that are non-asset backed commercial paper (ABCP) securitizations, where the originator, sponsor or securitization special purpose entity (SSPE) is established in the United Kingdom;
- Private ABCP programs, where the sponsor or SSPE of the ABCP program is established in the United Kingdom; and
- Private ABCP transactions under an ABCP program, where neither the sponsor nor the SSPE of the ABCP program is established in the United Kingdom, but an originator, sponsor or SSPE of an ABCP transaction within that ABCP program is established in the United Kingdom.
In each case, notification templates are prescribed, which are annexed to the direction.
The direction became immediately effective on January 31. The direction also applies beginning January 1, where notification would otherwise have been required; any such notifications need to be made as soon as reasonably possible from January 31.
The direction is available here.