On March 6, the UK Financial Services Authority (FSA) published policy statement PS08/2 Regulated Cover Bonds with feedback on proposals for a UK recognized covered bonds regime together with final rule changes for the FSA’s handbook including registration and ongoing requirements.

The policy statement follows a joint consultation with the UK Treasury launched in July 2007 that proposed the implementation of a UK recognized covered bonds legislative framework, as described in the July 27, 2007 edition of Corporate and Financial Weekly Digest.

The UK legislative framework under which UK issuers can issue covered bonds, which are permitted investments under Article 22(4) of the EU Undertakings for Collective Investment in Transferable Securities (UCITS) Directive, also came into effect on March 6, as described in the November 16, 2007 edition of Corporate and Financial Weekly Digest.

www.fsa.gov.uk/pubs/policy/ps08_02.pdf