On 24 June 2021, HM Treasury issued a call for evidence regarding the onshored Securitisation Regulation.
Article 46 of the onshored Securitisation Regulation places a legal obligation on HM Treasury to review the functioning of the Regulation and lay a report in Parliament by 1 January 2022. There are a number of areas in this review obligation that must be assessed by HM Treasury. Each of these areas is covered in the call for evidence.
The report to be laid in Parliament by HM Treasury is required to assess:
- Effects of the onshored Securitisation Regulation – including the introduction of the simple, transparent and standardised securitisations (STS) framework – on the functioning of the securitisation market, the contribution of securitisation to the real economy (in particular on access to credit for Small and Medium-sized Enterprises and investments), and the interconnectedness between financial institutions and the stability of the financial sector.
- Risk retention modalities.
- Disclosures related to private securitisations.
- An STS equivalence regime.
- Environmental, social, and governance disclosures.
- The third-party verification regime.
- Limited licensed banks.
The deadline for comments on the call for evidence is 2 September 2021.