Overseas simple, transparent and standardised securitisations regime
13.—(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) In determining whether the condition in paragraph (2) is satisfied, the Treasury must have regard to the effect of any law and practice applying in the country or territory to securitisations of the descriptions to be specified with respect to the following in particular—
(a)criteria as to simplicity, transparency and comparability;
(b)the supervision and enforcement framework.
(4) In paragraph (2) “applicable UK law” means any enactment of domestic law as it applies to STS securitisations.
(5) In making regulations under paragraph (1), the Treasury must also 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.
(6) 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—
(a)the law and practice of a country or territory outside the United Kingdom, or particular aspects of such law and practice;
(b)the arrangements mentioned in paragraph (5),
in relation to securitisations of descriptions specified in the request.
(7) If the Treasury request a report under paragraph (6), 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.
(8) Regulations under this regulation 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 regulation are subject to annulment in pursuance of a resolution of either House of Parliament.