We continue to prepare for a range of scenarios, including one in which the UK leaves the EU without a withdrawal agreement and implementation period having been ratified between the UK Government and the European Union (EU). This is the first consultation paper (CP) setting out our proposed technical standards for the onshored Securitisation Regulation.
We are consulting on proposed UK technical standards in the event the UK leaves the EU on October 31 without an implementation period and the relevant EU technical standards have not been brought into UK law as part of the EU Withdrawal Act. We seek to ensure that we have adequate technical standards to support a well-functioning Simple, Transparent, and Standardised (STS) securitisation market in the UK and can effectively supervise firms’ compliance with the requirements of the onshored Securitisation Regulation on Exit day assuming a no-deal Brexit.
Why we are consulting now
In the event of a no-deal Brexit, we have worked to put the necessary arrangements in place to ensure that the securitisation market can continue to work effectively. The Securitisation (Amendment) (EU Exit) Regulations 2019 transfers from the European Securities and Markets Authority (ESMA) to us the responsibility for receiving UK STS notifications and maintaining a list of UK STS securitisations on our website.
CP19/26 introduces our proposals and the accompanying draft instruments, for the technical standards:
- specifying the information that originators and sponsors are required to provide to comply with the STS notification requirement
- establishing the templates to be used for the provision of the required information in the above mentioned technical standards
Summary of our proposals
Our proposed technical standards are consistent with the draft technical standards on STS notification which ESMA has previously consulted on in an EU context. Those draft ESMA standards are laid out in their final report and will be well known to UK participants in the securitisation market.
Who this applies to
These proposals will be of interest to anyone involved in securitisations, including:
- firms involved in securitisation markets either as 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 and sponsors
- third party verifiers assessing compliance with STS criteria
This consultation has now closed. We will consider your feedback and plan to publish our final or near-final technical standards in a Policy Statement (PS) on or very near to Exit day.
We intend to publish further consultations covering other technical standards related to securitisation.