The Securitisation (Amendment) (EU Exit) Regulations 2019

Prospective

Valid from 31/12/2020

CHAPTER 6 U.K. Amendment of Chapter 5 of the Securitisation Regulation (supervision)

Article 29 (designation of competent authorities) U.K.

26.—(1) Article 29 is amended as follows.

(2) For paragraphs (1), (2) and (3) substitute—

“1.   Compliance with the obligations set out in Article 5 of this Regulation is to be supervised as follows—

(a) where the institutional investor is an insurance undertaking or a reinsurance undertaking, by the PRA;

(b) where the institutional investor is an AIFM which markets or manages AIFs in the United Kingdom, by the FCA;

(c) where the institutional investor is a management company or a UCITS which is an authorised open ended investment company as defined in section 237(3) of the 2000 Act, by the FCA;

(d) where the institutional investor is an occupational pension scheme, by the Pensions Regulator;

(e) where the institutional investor is a CRR firm—

(i) by the PRA, if the investor is a PRA-authorised person;

(ii) in any other case by the FCA.

2.   Compliance by a sponsor with the obligations set out in Articles 6, 7, 8 and 9 of this Regulation is to be supervised by the PRA, if the sponsor is a PRA-authorised person, and in any other case by the FCA.

3.   Paragraph 3A applies where an originator, original lender or SSPE is an insurance undertaking or a reinsurance undertaking, an AIFM, a management company, a UCITS which is an authorised open ended investment company, an institution for occupational retirement provision or a CRR firm.

3A.   Where this paragraph applies, compliance with the obligations set out in Articles 6, 7, 8 and 9 of this Regulation is to be supervised as follows—

(a) where the originator, original lender or SSPE is a PRA-authorised person, by the PRA;

(b) where the originator, original lender or SSPE is an institution for occupational retirement provision, by the Pensions Regulator; and

(c) in any other case by the FCA.

3B.   In paragraphs (1) to (3A)—

(a) ‘AIF’ and AIFM' have the meaning given in regulations 3 and 4(1) of the Alternative Investment Fund Managers Regulation 2013 M1 ;

(b) ‘CRR firm’ has the meaning given by Article 4(1)(2A) of Regulation (EU) No 575/2013;

(c) ‘occupational pension scheme’ has the meaning given in section 1(1) of the Pension Schemes Act 1993;

(d) ‘insurance undertaking’, ‘reinsurance undertaking’ and ‘PRA-authorised person’ have the meaning given in section 417(1) of the 2000 Act;

(e) ‘management company’ has the meaning given in section 237(2) of the 2000 Act M2 ; and

(f) ‘UCITS’ has the meaning given in section 236A of the 2000 Act M3 .”.

(3) In paragraph (4)—

(a) in the first sentence for the words from “Union and” to “Member States” substitute “ United Kingdom in relation to which paragraph 3A does not apply, the Treasury ”; and

(b) omit the second sentence;

(4) In paragraph (5)—

(a) in the first sentence for “Member States” substitute “ The Treasury ”; and

(b) omit the second sentence.

(5) Omit paragraphs (7) and (8).

Commencement Information

I1 Reg. 26 in force on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(2)

Marginal Citations

M1 S.I. 2013/1773, as amended by S.I. 2019/328 the Alternative Investment Fund Managers (Amendment etc.) (EU Exit) Regulations 2019

M2 The definition was substituted by S.I. 2019/325 the Collective Investment Schemes (Amendment) (EU Exit) Regulations 2019.

M3 Section 236A was inserted by S.I. 2019/325 the Collective Investment Schemes (Amendment) (EU Exit) Regulations 2019.

Article 30 (powers of the competent authorities) U.K.

27.  In Article 30—

(a) omit paragraph 1;

(b) in paragraph 2 for “The competent authority” substitute “ Competent authorities ”;

(c) in paragraph 4—

(i) in the first subparagraph for “The competent authority” substitute “ Competent authorities ”;

(ii) for the second subparagraph substitute—

“Where a competent authority identifies a material risk to the financial stability of a financial institution or to the financial system as a whole, it must take action to mitigate those risks and, unless it is the PRA, report its findings to the Bank of England.”; and

(d) for paragraph 5 substitute—

“5.   Competent authorities shall monitor any suspected circumvention of the obligations set out in Article 6(2) and ensure that sanctions are applied for a circumvention.”.

Commencement Information

I2 Reg. 27 in force on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(2)

Articles 31 to 37 U.K.

28.  Omit the following Articles—

(a) Article 31 (macroprudential oversight of the securitisation market);

(b) Article 32 (administrative sanctions and remedial measures);

(c) Article 33 (exercise of the power to impose administrative sanctions and remedial measures);

(d) Article 34 (criminal sanctions);

(e) Article 35 (notification duties);

(f) Article 36 (cooperation between competent authorities and the ESAs); and

(g) Article 37 (publication of administrative sanctions).

Commencement Information

I3 Reg. 28 in force on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(2)