Securitisation is an important part of the UK’s capital markets. Find out more about the UK Securitisation Regulation, the general requirements for securitisations, and the criteria and process for designating certain securitisations as STS.
Securitisation legislation aims to make the securitisation market work more effectively.
We want to make sure that firms operating in the financial markets, and businesses in the real economy, have access to an appropriate range of funding tools, and that disclosure to investors is adequate.
Changes to the EU Securitisation Regulation, made by the Securitisation (Amendment) (EU Exit) Regulations 2019, make sure that the onshored legislation (the UK Securitisation Regulation) operates effectively in the UK.
UK Securitisation Regulation
The UK Securitisation Regulation outlines the general requirements for all securitisations, as well as the criteria and process for designating certain securitisations as simple, transparent and standardised (STS).
In addition, onshored changes to the Capital Requirements Regulation (CRR) preserve the more risk-sensitive capital treatment of securitisations for banks and investment firms. This includes methods to calculate risk weights, and preferential treatment for STS securitisations meeting the criteria listed in CRR article 243.
Using our delegated powers, we and the Prudential Regulation Authority (PRA) have fixed deficiencies arising from the UK’s withdrawal from the EU in all EU binding technical standards (BTS) that implement the detail of the securitisation legislation and that were in force on 31 December 2020. We and the PRA may make further technical standards going forward.
Implementation of the regulation
We have consulted on and issued rules designed to implement the UK Securitisation Regulation:
Technical Standards specifying the information and the details of a securitisation to be made available by the originator, sponsor and securitisation special purpose entity (SSPE) under the UK Securitisation Regulation came into effect on 31 December 2020.
UK-formatted spreadsheets that may assist in the reporting of securitisations within the scope of the UK Securitisation Regulation are linked below. These are provided for convenience. Users should always check the requirements of the legislation directly:
- Annex 2: Underlying exposures - residential real estate
- Annex 3: Underlying exposures - commercial real estate
- Annex 4: Underlying exposures - corporate
- Annex 5: Underlying exposures - automobile
- Annex 6: Underlying exposures - consumer
- Annex 7: Underlying exposures - credit cards
- Annex 8: Underlying exposures - leasing
- Annex 9: Underlying exposures - esoteric
- Annex 10: Underlying exposures - add-on non-performing exposures
- Annex 11: Underlying exposures - ABCP
- Annex 12: Investor report - Non-ABCP securitisation
- Annex 13: Investor report - ABCP securitisation
- Annex 14: Inside information or significant event information - Non-ABCP securitisation
- Annex 15: Inside information or significant event information - ABCP securitisation
Securitisation Repositories (SR)
Originators, sponsors or SSPEs must report public securitisations within the scope of the UK Securitisation Regulation to a UK SR that is registered and supervised by us.
UK versions of the XML schemas and validation rules on disclosure templates are available below:
- XML schema - ABCP Significant Event and Investor Report
- XML schema - ABCP Underlying Exposure Report
- XML schema - Non-ABCP Significant Event and Investor Report
- XML schema - Non-ABCP Underlying Exposure Report
- SRCP XML Schemas - Change Log
- Validation rules - ABCP Significant Event and Investor Report
- Validation rules - ABCP Underlying Exposure Report
- Validation rules – Non-ABCP Significant Event and Investor Report
- Validation rules – Non-ABCP Underlying Exposure Report
To become a UK SR, firms will need to submit an application to us for registration. Please see our SR page for more details.
Reporting private securitisations
The Securitisation Regulations 2018 grant us and the PRA powers to direct the manner in which the originator, sponsor, or SSPE of a private securitisation established in the UK must make information under article 7(1)(a) to (g) of the UK Securitisation Regulation available to us and the PRA.
A private securitisation is one where no prospectus must be drawn up.
On 31 January 2019, we and the PRA issued a final Direction. This Direction may be amended by us or the PRA by further direction. The annex to this Direction includes the templates to be used for notifying us and the PRA of a private securitisation.
Simple, transparent and standardised (STS) securitisations
The framework for STS securitisations is designed to make it easier for investors to understand and assess the risks of a securitisation investment. It also affords preferential capital treatment for firms subject to CRR, which are exposed to STS securitisations. Subject to meeting specified criteria, securitising parties will be able to designate their securitisations as STS.
Although sponsors, originators and securitisation vehicles remain liable for their obligations under the UK Securitisation Regulation, they may – but are not obliged to – use the services of a UK Third Party Verifier (TPV) authorised by us to assess compliance of a securitisation with the UK STS criteria.
Our TPV page has more information on how prospective UK TPVs can apply to be regulated.
The UK Securitisation Regulation requires us to maintain a list of securitisations notified to us as meeting UK STS criteria.
To qualify as UK STS, the originators and sponsor of a securitisation (or, in the case of ABCP programmes and transactions, the sponsor) must be established in the UK and must notify us, using the onshored UK STS notification templates.
The Securitisation Regulations 2018 grant us the power to direct the manner in which an originator or sponsor of a securitisation established in the UK must inform us of an STS notification. Download the onshored UK STS notification templates and related instructions:
If your firm is already authorised by us, you will need to contact your firm’s Principal User for the appropriate STS access permissions. Once you have permission, click on ‘+ Start an Application’ and you’ll see instructions for submitting your notification under ‘FIRM NOTIFICATIONS’.
If your firm is not authorised, or registered on Connect, click on ‘+ Start an Application’ and navigate to ‘Authorise or Register a new Firm’.
To maintain an accessible pool of STS product for UK institutional investors, EU securitisations notified to the European Securities and Markets Authority (ESMA) as meeting EU STS criteria before and up to 31 December 2022, and which remain on ESMA’s list, will also qualify as UK STS for the life of the transaction.
20/04/2020: Information added Added information on Securitisation Repositories (SR)
31/01/2020: Information changed Updated with the latest information
15/01/2019: Information added Submitting private data section update