On 19 December 2018, the FCA published Policy Statement 18/25: EU Securitisation Regulation (PS18/25).

In PS18/25 the FCA sets out final and near-final rules that implement the EU Securitisation Regulation and the Capital Requirements Regulation Amendment (CRR Amendment). It follows two earlier FCA consultations (CP18/22 and CP18/30) which the regulator did not receive any formal responses to.

In PS18/25 the FCA sets out final rules, near final rules and guidance dealing with:

  • the authorisation and supervision of third party verifiers;
  • third party verifier fees – £1,500 application fee; £250 periodic fee;
  • amendments to the Investment Funds sourcebook and the Collective Investment Schemes sourcebook that cover the obligations of alternative investment fund managers and managers of UCITS investing in securitisations;
  • amendments to part of the Prudential sourcebook for investment firms to reflect the changes from the EU Securitisation Regulation and CRR Amendment; and
  • amendments to the Decision Procedure and Penalties manual and Enforcement Guide sections of the Handbook

Near final rules are included as they are subject to the commencement of the statutory instrument made by HM Treasury that will implement the EU Securitisation Regulation in the UK. The FCA expects to finalise the near final rules in January 2019 once the statutory instrument is in force.