In July 2007, the FSA and HM Treasury consulted on proposals for a UK recognised covered bonds legislative framework. As part of this consultation the FSA consulted on the Recognised Covered Bond sourcebook (Sourcebook).
The Regulated Covered Bonds Regulations 2008 were laid before Parliament on 14 February 2008. HM Treasury published its feedback to the consultation on the same date.
The FSA has now published Policy Statement 08/2: Regulated covered bonds: feedback on proposals for a UK recognised covered bonds legislative framework and final Handbook text (PS08/2). In PS08/2 the FSA sets out the feedback that it received on the July 2007 consultation together with the Sourcebook which comes into force on 6 March 2008.
In PS08/2 the FSA states that respondents were broadly supportive of the proposals and that the only major concern related to the use of third party verification. Whilst respondents supported using third parties to verify compliance with certain requirements of the regulated covered bonds regime, the scope of the proposal was challenged. The FSA has now amended the Sourcebook to replace third party verification with requirements for senior management to obtain appropriate third party advice and reports before confirming compliance.
View Policy Statement 08/2: Regulated covered bonds, 6 March 2008