PRA consults on rules replacing retained Securitisation Regulation

PRA is consulting on proposed rules to replace retained EU law requirements on PRA-authorised persons contained in provisions of the Securitisation Regulation. Following the enactment of FSMA 2023, Treasury plans that most firm-facing provisions of the Securitisation Regulation will be replaced with PRA and/or FCA rules.

The consultation also covers proposed adjustments to PRA’s securitisation supervisory statement on general requirements and capital framework, and clarifies the circumstances in which it envisages using its new power under section 138BA FSMA for disapplying and modifying proposed rules on the use of resecuritisations.

The consultation contains chapters relating to:

  • Proposals for replacing requirements on PRA-authorised persons and the exercise of PRA’s section 138BA power;
  • Proposals for replacing, with targeted policy adjustments, requirements on PRA-authorised persons in the Risk Retention Technical Standards;
  • Proposals for replacing, without targeted policy adjustments, requirements on PRA-authorised persons in the Disclosure Technical Standards;
  • The distinction between public and private securitisations and associated transparency requirements (although no proposals are put forward at this point); and
  • ‘Have regard’ and cost benefit analyses on the consultation proposals.

The consultation closes on 30 October 2023.

FCA has announced that it plans to publish its own consultation paper setting out proposed rules relating to provisions of the Securitisation Regulation for which it has supervisory responsibility on 7 August 2023.

Laura Wiles