HM Treasury to Legislate Securitization Repository Registration
HM Treasury issued a statement on securitization repository registration arrangements under the UK Securitization Regulation, in preparation for the end of the transition period of the withdrawal of UK from EU. The Treasury is informing prospective securitization repositories and relevant market participants that it will soon bring forward legislation to assist FCA when considering draft applications for registration from prospective securitization repositories, in relation to its functions under the UK Securitization Regulation. This will enable applicable securitization repositories to operate in the UK immediately following the end of the transition period. The Treasury seeks to ensure that FCA has the relevant powers to enable a well-functioning securitization regime following the end of the transition period.
This statement from HM Treasury should be read in conjunction with the statement of FCA on securitization repositories. During the transition period, EU securitization legislation continues to apply in the UK and originators, sponsors, or securitization special purpose entities will be required to report their public securitizations to a securitization repository registered by ESMA. At the end of the transition period, the UK Securitization Regulation (the EU Securitization Regulation as amended by 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 securitization repository is available. To become a UK securitization repository, firms will need to submit an application for registration to FCA. To ensure a smooth transition in the reporting of public securitizations, FCA will shortly be publishing a draft application form that prospective UK securitization repositories can use to submit a draft application for registration to FCA, before the end of the transition period.
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Keywords: Europe, UK, Banking, Securities, Brexit, Transition Period, Securitization, Securitization Regulation, Securitization Repositories, FCA, HM Treasury
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