Financial Services and Markets Act 2023

STS equivalent non-UK securitisations

33 After Article 28 (third party verifying STS compliance) insert—

“CHAPTER 4A STS equivalent non-UK securitisations

Article 28A Designation of country or territory in relation to securitisations

1. The Treasury may by regulations designate a country or territory in relation to securitisations of descriptions specified in the regulations.

2. The power in paragraph 1 is exercisable only if the Treasury are satisfied that the law and practice which applies in the country or territory, in relation to securitisations of the descriptions specified, has equivalent effect (taken as a whole) to applicable UK law.

3. “Applicable UK law” means:

(a) this Regulation, as it applies to STS securitisations, and

(b) the Securitisation Regulations 2018 (S.I. 2018/2188), as those regulations apply to STS securitisations.

4. In making regulations under paragraph 1, the Treasury must have regard, in addition to any other matters they consider relevant, to whether the FCA (and, where relevant, the PRA) have established effective cooperation arrangements with the competent authorities of the country or territory.

5. When considering whether to make, vary or revoke regulations under paragraph 1, the Treasury may, by making a request in writing to the FCA, require the FCA to prepare a report on the law and practice of a country or territory outside the United Kingdom, or particular aspects of such law and practice, in relation to securitisations of descriptions specified in the request.

6. If the Treasury request a report under paragraph 5, the FCA must:

(a) consult the PRA when preparing the report, and

(b) provide the Treasury with the report within such reasonable period as may be specified in the request (or such other period as may be agreed with the Treasury).

7. Regulations under paragraph 1 may—

(a) specify matters that a person carrying out a due-diligence assessment required by Article 5(3) must consider with regard to an STS equivalent non-UK securitisation;

(b) in relation to a matter specified, specify the extent to which the person may rely on the matter.

8. Regulations under this Article are to be made by statutory instrument.

9. Such regulations may—

(a) contain incidental, supplemental, consequential and transitional provision; and

(b) make different provision for different purposes.

>10.. Regulations under this Article are subject to annulment in pursuance of a resolution of either House of Parliament.”