FCA updated information on the implementation of securitization legislation in UK. At the end of the transition period leading up to Brexit, the UK Securitization Regulation—also known as the Securitization (Amendment) (EU Exit) Regulations 2019—will transfer the powers to register and supervise UK securitization repositories from ESMA to FCA. From that point onward, public securitizations within the scope of the regulation must be reported to a UK securitization repository, once a UK repository is available.
To register itself as a UK Securitization Repository, a firm will need to submit an application for registration to FCA. Soon, FCA is expected to publish a draft application form for prospective UK repositories to submit a draft application for registration to FCA before the end of the transition period. This should facilitate prospective UK repositories being registered by FCA to become operational as soon as possible after the end of the transition period, provided they meet the conditions for registration under the UK Securitization Regulation. During the transition period, EU securitization legislation will continue to apply in the UK and originators, sponsors, or securitization special purpose entities (SSPEs) will be required to report their public securitizations to a securitization repository registered by ESMA.
Related Link: Update on Securitization Repositories
Keywords: Europe, UK, Banking, Securities, Brexit, Securitization, Securitization Regulation, Securitization Repositories, FCA
Previous ArticleEBA Updates Guides on Risk and Financial Soundness Indicators
BIS published the September issue of the Quarterly Review, which contains special features that analyze the rapid rise in equity funding for financial technology firms, the effectiveness of policy measures in response to pandemic, and the evolution of international banking.
The Basel Committee for Banking Supervision (BCBS) met in September 2021 and reviewed climate-related financial risks, discussed impact of digitalization, and welcomed efforts by the International Financial Reporting Standards (IFRS) Foundation to develop a common set of sustainability reporting standards
The Office of the Comptroller of the Currency (OCC) issued a Cease and Desist Order against MUFG Union Bank for deficiencies in technology and operational risk governance.
The European Commission (EC) published the Delegated Regulation 2021/1527 with regard to the regulatory technical standards for the contractual recognition of write down and conversion powers.
In a response to the questions posed by a member of the European Parliament, the President Christine Lagarde highlighted the commitment of the European Central Bank (ECB) to an ambitious climate-related action plan along with a roadmap, which was published in July 2021.
The Single Resolution Board (SRB) published a Communication on the application of regulatory technical standard provisions on prior permission for reducing eligible liabilities instruments as of January 01, 2022.
The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to provide guidance to authorized deposit-taking institutions on the interpretation of APS 120, the prudential standard on securitization.
The French Prudential Control and Resolution Authority (ACPR) published the corrective version of the RUBA taxonomy Version 1.0.1, which will come into force from the decree of January 31, 2022.
The European Commission (EC) announced that Nordea Bank has signed a guarantee agreement with the European Investment Bank (EIB) Group to support the sustainable transformation of businesses in the Nordics.
The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to clarify the regulatory capital treatment of investments in the overseas deposit-taking and insurance subsidiaries.