The Prudential Regulation Authority (PRA) in the UK has commenced a consultation on new proposed rules for securitisation. The Consultation Paper 15/23 – Securitisation: General requirements (“CP 15/23”) lays out the PRA’s plans to replace retained EU law requirements relating to securitisation. These new rules are in consideration following the consequential changes due to Brexit.
The consultation, as per JD Supra, intends to bring greater clarity on the application of the UK Securitisation Regulation to PRA-regulated entities. Notably, the proposed rules aim to reflect the reclassification of securitisation positions in accordance with the UK’s onshored Capital Requirements Regulation.
This consultation is part of a larger post-Brexit review of financial laws in the UK. Focus has been placed on ensuring the stability of the financial system in the country while addressing the need for regulation in harmony with global standards.
In the perspective of legal professionals, there may be a number of implications, including potentially needing to reassess legal strategies in relation to securitisation transactions and the compliance process of related entities.With this in mind, it will be crucial for legal teams to stay updated with these developments to ensure proper compliance with any new regulatory changes.