FCA issued a proposal on the new application and periodic fees for the authorization of Third Party Verification Agents (TPVs) under the Securitization Regulation. The proposal is based on the requirements of the draft European regulatory technical standards and on the existing framework for setting fees. The Securitization Regulation and related amendment to the Capital Requirements Regulation (CRR) came into effect on January 18, 2018 while most of their provisions will come into effect on January 01, 2019. FCA is consulting on a number of changes to ensure that its Handbook is consistent with the directly applicable EU Securitization Regulation and CRR amendment. The consultation closes on October 01, 2018.
HM Treasury has confirmed its intention to name FCA as the competent authority for the UK and as such FCA will be responsible for authorizing TPVs from January 01, 2019. This will be finally confirmed via the HM Treasury UK Statutory Instrument for Securitization, which is expected to be laid in early December 2018.If FCA is announced as the competent authority for TPVs, then TPVs will need to go through the FCA authorization process before starting business. From September 2018, FCA will consider draft applications. After the Statutory Instrument is laid giving FCA the power to set fees, applicants will be able to formalize their applications by paying the fee.
A TPV can be used by a sponsor, originator, and securitization vehicle to check whether a Securitization is compliant with simple, transparent, and standardized (STS) criteria, as set out by the Securitization Regulation. TPVs cannot be insurance firms, credit institutions, investment firms, and credit rating agencies.
Comment Due Date: October 01, 2018
Keywords: Europe, UK, Banking, Securities, Securitization Regulation, STS Securitization, CRR, TPVs, FCA Handbook, FCA
Previous ArticleDubai FSA Updates its Rulebook and Sourcebook Modules in August 2018
BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).
EBA finalized the guidelines on treatment of structural foreign-exchange (FX) positions under Article 352(2) of the Capital Requirements Regulation (CRR).
FSB published a statement on the impact of COVID-19 pandemic on global benchmark transition.
IAIS published the list of Internationally Active Insurance Groups (IAIGs) publicly disclosed by group-wide supervisors.
FED has temporarily revised the reporting form on consolidated financial statements for holding companies (FR Y-9C; OMB No. 7100-0128).
EC launched a consultation on the review of the key elements of Solvency II Directive, with the comment period ending on October 21, 2020.
ECB launched a consultation on the guide that sets out supervisory approach to consolidation projects in the banking sector.
PRA published a letter that builds on the expectations set out in the supervisory statement (SS3/19) on enhancing banks' and insurers' approaches to managing the financial risks from climate change.
US Agencies (Farm Credit Administration, FDIC, FED, FHFA, and OCC) finalized changes to the swap margin rule to facilitate implementation of prudent risk management strategies at banks and other entities with significant swap activities.
IAIS published technical specifications, questionnaires, and templates for 2020 Insurance Capital Standard (ICS) and Aggregation Method data collections.