FCA Updates Information on Implementation of Securitization Regulation
FCA updated information on the implementation of securitization regulation. The recent update relates to the notifications for the Simple, Transparent, and Standardized (STS) criteria on securitization. The onshored Securitization Regulation transfers the responsibility for maintaining a list of STS securitizations from ESMA to FCA. From the end of the transition period, FCA will maintain a list of securitizations duly notified to it as meeting the STS criteria of UK. FCA will soon open its portal wherein the notification templates can be accessed and the STS notification can be submitted before December 31, 2020, when the UK STS framework comes into effect. FCA will communicate with entities ahead of the portal opening.
However, during the transition period, UK firms should continue to notify ESMA where a securitization meets the STS requirements. To qualify as UK STS, the originators and sponsor of a securitization must be established in the UK. FCA must be notified, using the onshore UK STS notification templates, for:
- Securitizations that meet the UK STS criteria under the onshore regulation
- UK securitizations previously notified to ESMA as EU STS and that meet the UK STS criteria
Originators and sponsors should inform FCA under Article 27(4) of the Securitization Regulation when a securitization no longer meets the STS requirements. To maintain an accessible pool of STS products for UK institutional investors, EU securitizations notified to ESMA as meeting the EU STS criteria before and up to two years after the end of the transition period, and which remain on ESMA’s list, will also qualify as UK STS for the life of the transaction.
Related Link: Update on STS Notifications
Keywords: Europe, EU, UK, Banking, Securities, Securitization Solution, Brexit, STS Securitization, Brexit Transition, FCA
Previous Article
FSB Report Finds Steady Increase in Climate-Related DisclosuresRelated Articles
BSP Tackles Aspects of Lending and Islamic, Open & Sustainable Finance
The Central Bank of the Philippines (BSP) issued communications covering developments related to online lending platforms, open finance framework and roadmap, and on the expected regulations in the area sustainable finance.
US Agencies Issue Regulatory Updates, FDIC Launches Tech Sprint
The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.
EBA Issues Guide on Bank Resolvability, Consults on Transferability
The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).
MFSA Publishes CRD5 Updates and Supervisory Priorities for 2022
The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0.
HKMA Extends Repayment for Trade Facilities, Consults on Crypto-Assets
The Hong Kong Monetary Authority (HKMA) published a circular, along with the reporting form and instructions, for self-assessment, by authorized institutions, of compliance with the Code of Banking Practice 2021.
FCA Registers Securitization Repositories; PRA Issues 2022 Priorities
The Financial Conduct Authority (FCA) decided to register European DataWarehouse Ltd and SecRep Limited as securitization repositories under the UK Securitization Regulation, with effect from January 17, 2022.
EC Regulation Sets Out Methods for Measuring K-Factors Under IFR
The European Commission (EC) published the Delegated Regulation 2022/25, which supplements the Investment Firms Regulation (IFR or Regulation 2019/2033) with respect to the regulatory technical standards specifying the methods for measuring the K-factors referred to in Article 15 of the IFR.
BIS Studies How Platform Models Impact Financial Stability & Inclusion
The Bank of International Settlements (BIS) published a paper that assesses the ways in which platform-based business models can affect financial inclusion, competition, financial stability and consumer protection.
CBE Issues Additional Measures to Ease Disruptions from Pandemic
The Central Bank of Egypt (CBE) published a circular with instructions on emergency liquidity assistance to banks that are unable to meet their liquidity requirements.
ESAs Publish List of Financial Conglomerates for 2021
The European Supervisory Authorities (ESAs) published the list of identified financial conglomerates for 2021.
