The Securitisation (Amendment) (EU Exit) Regulations 2019

Article 43 (transitional provisions) U.K.

30.—(1) Article 43 is amended as follows.

(2) After paragraph 4 insert—

“4A.   Subject to the second subparagraph, in paragraphs 3 and 4 a reference to a numbered Article is a reference to the Article so numbered of this Regulation as it had effect immediately before [F1 IP completion day], or as it has effect on or after [F1 IP completion day] in relation to an EEA State.

In paragraphs 3(b) and 4, in relation to a STS notification made on or after [F1 IP completion day] by a person who is established in the United Kingdom, a reference to Article 27(1) is a reference to that Article as it has effect on or after [F1 IP completion day] in the United Kingdom.“STS notification” means notification that a securitisation meets the requirements of Section 1 or Section 2 of Chapter 4.”.

(3) In paragraph 5 after the existing text insert the following subparagraph—

“For the purposes of this paragraph, Articles 407 and 410 of Regulation (EU) No 575/2013 M1 (which set out, in part, requirements for due diligence) have effect with the following modifications—

(a) in Article 407 (additional risk weight) and Article 410 (uniform condition of application) a reference to Article 405 (retained interest of the issuer) is a reference to that Article as modified by regulation 30(3) of the Securitisation (Amendment) (EU Exit) Regulations 2019;

(b) in Article 407, in the first subparagraph ignore the reference to Article 409; and

(c) in Article 410—

(i) ignore paragraph 1;

(ii) in paragraph 2—

(aa) in the first subparagraph read the opening words as if for “EBA shall develop draft regulatory” there were substituted “ The FCA and the PRA may each make ”, and ignore point (d);

(bb) ignore the second and third subparagraphs; and

(iii) in paragraph 3, —

(aa) in the first subparagraph read the opening words as if for “EBA shall develop draft regulatory” there were substituted “ The FCA and the PRA may each make ”;

(bb) ignore the second and third subparagraphs.”.

(4) In paragraph 6—

(a) for the words from “credit institutions” to “Directive 2011/61/EU” substitute “ a CRR firm (as defined by Article 4(1)(2A) of Regulation (EU) No 575/2013), an insurance undertaking (as defined in section 417(1) of the 2000 Act), a reinsurance undertaking (as defined in that section) and an AIFM (as defined by regulation 4(1) of the Alternative Investment Fund Managers Regulation 2013) ”; and

(b) after the existing text insert the following subparagraph—

“For the purposes of this paragraph, Article 405 of Regulation (EU) No 575/2013 M2 has effect with the following modifications—

(a) read paragraph 2 as if—

(i) for the first subparagraph there were substituted—

“Where—

(a) a mixed financial holding company,

(b) a UK parent institution which is a credit institution,

(c) a financial holding company established in the United Kingdom, or

(d) a subsidiary of such a company or institution,

as an originator or sponsor, securitises exposures from one or more credit institutions, investment firms or other financial institutions which are included in the scope of supervision on a consolidated basis, the requirement set out in paragraph 1 may be satisfied on the basis of the consolidated situation of the mixed financial holding company, UK parent institution or financial holding company concerned.”;

(ii) in the second subparagraph for the words from “, in a timely manner” to the end there were substituted “ the information needed to satisfy the requirements set out in Article 409, in a timely manner, to the originator or sponsor and, if the originator or sponsor is a subsidiary, to the mixed financial holding company, UK parent institution or financial holding company which is the parent undertaking of the subsidiary ”; and

(iii) after the second subparagraph there were inserted—

“In this paragraph—

(a) ‘credit institution’, ‘financial holding company’, ‘financial institution’, ‘investment firm’, ‘subsidiary’ and ‘UK parent institution’ have the meaning given in Article 4(1) of Regulation (EU) No 575/2013; and

(b) ‘mixed financial holding company” has the meaning given in regulation 1(2) of the Financial Conglomerates and Other Financial Groups Regulations 2004 M3 .”; and

(b) in paragraph 3, in point (b) ignore “of Member States”.”.

(5) In paragraph 7 for the words from “regulatory” to “apply” substitute “ FCA and the PRA, acting jointly, have made technical standards pursuant to Article 6(7) of this Regulation ”.

(6) In paragraph 8 for the words from “regulatory” to “apply” substitute “ FCA and the PRA, acting jointly, have made technical standards pursuant to [F2 Article 7(3)] of this Regulation ”.

Textual Amendments

F1 Words in reg. 30(2) substituted (30.12.2020) by The Financial Services and Economic and Monetary Policy (Consequential Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1301), regs. 1, 3, Sch. para. 35(e)

F2 Words in reg. 30(6) substituted (31.12.2020 immediately before IP completion day) by The Financial Services (Electronic Money, Payment Services and Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/1212), regs. 1(3), 21; 2020 c. 1, Sch. 5 para. 1(1)

Commencement Information

I1 Reg. 30 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(2)

Marginal Citations

M1 Articles 407 and 410, with all other provisions of Part 5 of Regulation (EU) No 575/2013, are repealed by the CRR amending regulation, Article 1(11).

M2 Article 405, with all other provisions of Part 5 of Regulation (EU) No 575/2013, is repealed by the CRR amending regulation, Article 1(11).

M3 S.I. 2004/1862, as amended by 2019/264 the Financial Conglomerates and other Financial Groups (Amendment) (EU Exit) Regulations 2019.