CP19/11: Handbook changes to reflect the application of the Securitisation (Amendment) (EU Exit) Regulations 2019 and Securitisation Regulations 2018

Open consultation: CP19/11
Consultation closes
Final rules
June 2019

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 on 29 March 2019. To do so the Treasury has laid before Parliament the Securitisation (Amendment) (EU Exit) Regulations 2019 (Exit SI).

Read CP19/11 (PDF)

In this Consultation Paper we are consulting on changes to the Decision Procedure and Penalties Manual (DEPP) and the Enforcement Guide (EG) that reflect our new responsibilities over SRs. We propose to apply our existing supervisory and enforcement processes as necessary to enable us to fulfil these new roles effectively.

We are also consulting on 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 and policy statement PS18/25 where we consulted on and laid out rules in respect of the draft Statutory Instrument.

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

This consultation 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

What you need to do

We want to hear your feedback on our proposals.

Please send us your comments by 8 April 2019.

Online response form

You can also:

  • email your responses to [email protected]
  • write to EMO Law & Policy, Financial Conduct Authority, 12 Endeavour Square, London, E20 1JN

Next steps

We are asking for comments on this consultation by 8 April 2019. We intend to publish responses and our final rules by mid-June.