On February 14, the UK Treasury published a summary of the responses it has received to its consultation on proposals for a UK Covered Bonds regime, as described in the November 16, 2007 edition of Corporate and FinancialWeekly Digest. The Treasury has also published draft legislation implementing the proposed regime.

The regulations introduce a new UK regime for covered bonds complying with the UCITS Directive (85/611EC). Respondents to the consultation supported the proposals, but pointed out that new legislation should focus on quality rather than flexibility. The Treasury has made a number of amendments in light of the responses it has received.

The new regime is expected to come into force on March 6.