Schedule 2: Transitional amendments Part 3 – Amendments to the EU Securitisation Regulation 2017 Paragraph 33: Designation of countries or territories in relation to STS equivalent non-UK securitisations
Paragraph 33 inserts new Article 28A into the UK Securitisation Regulation.
	Paragraph 1 of new Article 28A confers on HM Treasury a power to make regulations designating a country or territory in relation to specified descriptions of securitisations (‘STS equivalent non-UK securitisations.’)
	Paragraph 2 of new Article 28A allows HM Treasury to do so only if it is satisfied that the law and practice of the country or territory in relation to such securitisations has equivalent effect to the UK Securitisation Regulation and the 2018 Regulations as they relate to UK STS securitisations (‘applicable UK law’, as defined by paragraph 3).
	Paragraph 4 of new Article 28A says that, in making such regulations, HM Treasury must have regard to whether the FCA and, where relevant, the PRA, have established effective cooperation arrangements with the competent authorities of the country or territory being designated, as well as any other matter it considers relevant.
	Paragraph 5 sets out that HM Treasury may request a report in writing from the FCA on the law and practice of a country or territory in relation to specified securitisations. This can be requested when HM Treasury is considering whether to make, vary or revoke its designation of a country or territory.
	Paragraph 6 specifies what the FCA must do when HM Treasury requests such a report.
	Paragraph 7 sets out that the regulations made by HM Treasury may specify matters that must be considered by an institutional investor carrying out due diligence under Article 5(3) of the UK Securitisation Regulation, prior to holding a position in an STS equivalent non-UK securitisation.
	Paragraphs 8, 9 and 10 set out the requirements for regulations made by HM Treasury under new Article 28A.