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.
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:
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.
These proposals will be of interest to anyone involved in securitisations, including:
Please send us your comments on our proposed technical standards by 27 August 2019.
You can also:
We are proposing a 4-week consultation because:
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 the rest of the technical standards.