On 27 October 2026, there was published a draft statutory instrument (SI) The Securitisation (Amendment and Miscellaneous Provisions) Regulations 2026 (the Regulations).

Background

The Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) published consultation papers on reforming the securitisation framework in February 2026.

Summary

These Regulations amend the Securitisation Regulations 2024 (the Securitisation Regulations) and the Financial Services Act 2012 (Relevant Functions in relation to Complaints Scheme) Order 2014, in particular:

  • Regulation 2: Amends the Financial Services Act 2012 (Relevant Functions in relation to Complaints Scheme) Order 2014 to exclude from the complaints scheme the FCA’s and PRA’s functions of issuing statements of policy under regulation 46 of the Securitisation Regulations. It also makes a consequential amendment following the omission of regulation 22 of the Securitisation Regulations.
  • Regulation 3: Removes provisions relating to securitisation repositories from the Securitisation Regulations. These include Part 5 of those Regulations, related monitoring and enforcement provisions, provisions applying the Financial Services and Markets Act 2000 (FSMA 2000) in relation to securitisation repositories, and related transitional provisions.
  • Regulation 3(3): Makes a consequential amendment to regulation 13 of the Securitisation Regulations, which concerns the designation of countries and territories in relation to overseas securitisations, to reflect the revised due-diligence requirements applying to occupational pension schemes.
  • Regulation 3(5): Omits regulation 32A of the Securitisation Regulations to define FCA due-diligence rules.
  • Regulation 3(6): Substitutes regulation 32B of the Securitisation Regulations. The substituted regulation requires trustees or managers of occupational pension schemes who are not the originator, sponsor or original lender, before and while holding a securitisation position, to comply with the FCA due-diligence rules as applicable to institutional investors. It also makes provision about responsibility where investment management decisions, and compliance with the relevant due-diligence obligations, are delegated to an authorised institutional investor.
  • Regulation 3(7): Omits regulation 32C, as the ongoing due-diligence requirements are now provided for through substituted regulation 32B and the FCA due-diligence rules.
  • Regulation 3(8): Omits regulation 32D, the substance of which is incorporated into substituted regulation 32B. Regulation 3(12), (15), (16), (17)(a) and (18) make related consequential and transitional amendments.
  • Regulation 3(9): Omits the requirement for the FCA and PRA to make general rules relating to due-diligence requirements of relevant institutional investors, by omitting regulation 33.
  • Regulation 3(10): Changes the requirement for the FCA to make due-diligence rules for small registered UK Alternative Investment Fund Managers into a power to do so. Paragraphs (b) and (c) of regulation 3(17) apply, in relation to rules made under regulation 34(1) of the Securitisation Regulations, provisions of FSMA 2000 concerning the giving of guidance by the FCA and arrangements for discharging the FCA’s functions.

Next steps

The Regulations set out that most of the provisions would come into force on 1 January 2027 and the remaining provisions would come into force on 25 May 2027.