Read PS19/15 (PDF)
Securitisation repositories (SRs) in the European Union (EU) are currently regulated by the European Securities and Markets Authority (ESMA). The Treasury intends to transfer responsibility for regulating SRs to the FCA when the UK leaves the EU. To do so the Treasury has laid before Parliament the Securitisation (Amendment) (EU Exit) Regulations 2019 (Exit SI).
In March, we published CP19/11 (PDF) consulting on changes to the Decision Procedure and Penalties Manual (DEPP) and the Enforcement Guide (EG) that reflect our new responsibilities over SRs. We are now publishing near final rules to implement the Exit SI. These rules will be made final when the Exit SI comes into force when the UK leaves the EU.
We are also publishing final rules in respect of minor amendments to DEPP and EG resulting from new enforcement powers granted to us under the Securitisation Regulations 2018 (2018 Regulations). This follows our consultation in CP18/30 (PDF) and policy statement PS18/25 where we consulted on and laid out rules in respect of the draft Statutory Instrument.
We received 1 formal response to CP19/11 and the respondent supported our overall approach. As a result, our final and near-final rules are the same as those we consulted on in the CP, except for some minor amendments to clarify our decision-making procedures and update references to the legal instruments.
Recently, in our consultation in CP19/1 we set out the fees structure we propose to establish for SRs when responsibility for their regulation passes to us from ESMA after the UK leaves the EU.
Who this applies to
The Handbook changes will be of interest to anyone who may be subject to the 2018 Regulations and the Exit SI. This will include (but is not limited to):
- entities which may wish to act as SRs
- firms involved in securitisation markets either as institutional investors or manufacturers (originators, sponsors or securitisation special purpose entities) (SSPEs)) of securitisations
- individuals holding offices or positions involving responsibility for taking management decisions at originators, sponsors or SSPEs
Next steps
The final rules resulting from new enforcement powers granted to us under the 2018 Regulations will come into force immediately.