The UK government is currently in the process of implementing the EU Securitisation Regulation (SR) which, among other things, aims to harmonise due diligence, risk retention and disclosure in relation to securitisations.

HM Treasury has published a letter to the FCA indicating the Treasury’s intention to designate the FCA as a competent authority responsible for the supervision of compliance of UK established: (i) sellers of a securitisation position; (ii) persons with obligations; and (iii) originators, original lenders and securitisation special purpose entities not covered by the EU legislative acts. The FCA is also designated as the competent authority responsible for the authorisation of third party verifiers and the supervision of their compliance with obligations as set out in the SR.

In addition, the FCA published a consultation paper (CP18/30) outlining its proposals to amend the Decision Procedure and Penalties manual (DEPP) and Enforcement Guide (EG) to implement the SR, which will come into force on 1 January 2019.