The draft Securitisation Amendment (EU Exit) Regulations 2019 will ensure that the new securitisation regime, as set out in Regulation (EU) 2017/2402 laying down a general framework for securitisation and creating a specific framework for simple, transparent and standardised securitisation (the “Securitisation Regulation”), and which took effect in the U.K. from 1 January 2019, continues to operate effectively in the U.K. following Exit Day in the event of a no deal Brexit.
In this paper, the FMLC has highlighted legal uncertainties arising from the draft statutory instrument related to: (i) E.U. legislative references, including cross-references to E.U. Directives; (ii) the geographical scope of the onshored securitisation regime, particularly with respect to the risk retention requirement; (iii) due diligence requirements for institutional investors; and (iv) transitional provisions and guidelines for the U.K. securitisation regime.
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