FCA Proposes Handbook Changes in Line with the EU Securitization Rules

FCA proposed to amend the Decision Procedures and Penalties Manual (DEPP) and Enforcement Guide (EG) to reflect the changes introduced by the EU Securitization Regulation and by HM Treasury that is intending to lay an implementing Statutory Instrument (SI) before Parliament. These amendments include, but are not limited to, the decision procedure for applications for and withdrawal of authorization of third party verifiers (TPV) and the extension of the enforcement powers to cover unauthorized firms acting as sponsors, originators, or Securitization Special Purpose Entities (SSPEs) in a securitization. This consultation will be of interest to anyone who may be subject to regulation under the EU Securitization Regulation. This includes (but is not limited to) the following entities:

• Entities that may wish to act as TPVs
• Firms involved in securitization markets, either as institutional investors or manufacturers (originators, sponsors or SSPEs) of securitizations or as sellers of securitization positions
• Unauthorized entities (originators, original lenders, or SSPEs) participating in a securitization transaction subject to the EU Securitization Regulation
• Individuals holding offices or positions involving responsibility for taking management decisions at originators, sponsors, or SSPEs

Related Links

• News Release
• CP18/30 (PDF)
• Overview of Securitization Legislation

Comment Due Date: November 02, 2018

Keywords: Europe, UK, Banking, Securities, Securitization Regulation, CRR, FCA Handbook, FCA