On 22 April 2024, a draft statutory instrument, the Securitisation (Amendment) Regulations 2024 (the draft SI), which makes amends to the Securitisation Regulations 2024, was published alongside a draft Explanatory Memorandum

The draft SI forms part of HM Treasury’s programme to deliver a Smarter Regulatory Framework for financial services. The Securitisation Regulations 2024 establish the new legislative framework under which financial services regulators will make rules on general requirements for securitisation that apply to firms. The draft SI makes textual amendments to the Securitisation Regulations 2024, so that the resulting law will be contained in a single set of Regulations.

The draft SI:

  • Restates due diligence requirements for Occupational Pension Schemes, currently dealt with by the Securitisation Regulation. This is because The Pensions Regulator (which supervises Occupational Pension Schemes) does not have statutory rule-making powers, unlike the financial services regulators. Therefore, provisions relating to Occupational Pension Schemes are restated and set out in the draft SI.
  • Restates the prohibition on the establishment of Securitisation Special Purpose Entities in high-risk jurisdictions, with a modification to specify its application to institutional investors, as well as originators or sponsors.
  • Contains a range of consequential amendments of other enactments, resulting from the Securitisation Regulations 2024 or the revocation of the Securitisation Regulation.

Most provisions of the draft SI are due to come into force on 1 November 2024.