It now contemplates an STS equivalence regime. Will the UK go it alone? FSMA 2023 (which got Royal Assent last week) contains a set of STS-related amendments to the UK-onshored Securitisation Regulation (and indeed the onshored CRR and the MMF Regulation). We now have a new Article 28A which empowers H.M. Treasury to make regulations designating the EU (or indeed anywhere else) as “equivalent”, and we have a new definition, “STS equivalent non-UK securitisation”; and there are some related amendments. The only relevance of this in the UK-onshored text of the Securitisation Regulation is that in the UK version, Article 5(3) is amended so that it now reads:
“3. Prior to holding a securitisation position, an institutional investor, other than the originator, sponsor or original lender, shall carry out a due-diligence assessment which enables it to assess the risks involved. That assessment shall consider at least all of the following: …
(da) with regard to an STS equivalent non-UK securitisation, such matters as may be specified in regulations under Article 28A (and may rely on such matters to such extent as may be specified)”.
The interesting question is whether the UK would unilaterally designate the EU as equivalent, or only if the EU reciprocates.
The dual-law text on our client-facing pages was amended on Monday.
and then 