FCA Publishes Instruments Implementing the EU Securitization Regulation
On January 3, the UK Financial Conduct Authority (FCA) published the Securitization Regulation Implementation (Fees for Third Party Verifiers) Instrument 2019 (FCA 2019/1) and Enforcement (EU Securitization Regulation) Instrument 2019 (FCA 2019/2) (collectively, the Securitization Instruments).
The Securitization Instruments have been published in light of the Financial Services and Markets Act 2000 (Securitization) Regulations 2018 (UK Securitization Regulations), which became effective on January 1, and reflect the United Kingdom’s implementation of the European Union’s Securitization Regulation (EU Securitization Regulation). The Securitization Instruments subsequently became effective on January 3.
Additionally, the FCA published a statement jointly with the UK Prudential Regulation Authority (PRA) on December 20, 2018, in which they set out their intention to exercise the power granted to them under the UK Securitization Regulations to direct the manner in which the originator, sponsor or securitization special purpose entity of a private securitization established in the United Kingdom must make information available to the FCA or PRA. The FCA and PRA intend to exercise this power beginning January 15.
Only a summary of the relevant information would need to be notified to the relevant UK competent authority—the full set of information would remain available to each UK competent authority upon request. The FCA and PRA’s joint statement also sets out the frequency with which notifications would need to be provided and provides a link to the FCA-PRA private securitization notification template.
The UK Securitization Regulations are available here.
The FCA and PRA’s joint statement is available here.