Revocation of retained EU law Transitional amendments Amendments to the EU Securitisation Regulation 2017
Regulation (EU) 2017/2402 (‘the EU Securitisation Regulation’), laid down a general framework for securitisation and created a specific framework for designating certain securitisations as STS. It applied in the UK and EU from 1 January 2019. The EU Securitisation Regulation was accompanied by the Securitisation Regulations 2018 SI 2018/1288 (‘the 2018 Regulations’), which amended UK law to ensure that the EU Securitisation Regulation was fully effective and enforceable in the UK.
	The Securitisation (Amendment) (EU Exit) Regulations 2019, SI 2019/660 (‘the Securitisation Exit SI’) addressed deficiencies in the EU Securitisation Regulation and the 2018 Regulations that arose from the withdrawal of the UK from the EU. These changes, which took effect at the end of the EU Exit transition period, were made to ensure that the securitisation framework continued to operate effectively after the UK left the EU. This legislative approach, which was taken across government, is known in financial services as ‘onshoring’. Amendments to the onshoring arrangements for securitisation (extending the duration of the transitional arrangements for EU STS securitisations) were made by the Financial Services (Miscellaneous Amendments) (EU Exit) Regulations 2022, SI 2022/1080 and the Financial Services (Miscellaneous Amendments) Regulations 2022, SI 2022/1223. The onshored EU Securitisation Regulation is referred to as the UK Securitisation Regulation.
	The UK Securitisation Regulation aims to strengthen the legislative framework for securitisations and revive high-quality securitisation markets after the Global Financial Crisis. It seeks to do this in two ways:
	First, it sets out provisions in relation to all securitisations which are within its scope, consolidating and adding to the rules that previously applied to particular types of regulated entities. These provisions include requirements for SSPEs, investors’ due diligence, risk retention and transparency obligations, credit-granting standards, and a ban on re-securitisation, as well as a supervisory and enforcement framework for these requirements.
	Secondly, it sets out a regulatory, supervisory, and enforcement framework for STS securitisations. The framework for STS securitisations is designed to make it easier for investors to understand and assess the risks of a securitisation investment.
	Through this Act, the UK Securitisation Regulation is being amended to add new Chapter 4A, which creates the regime for STS equivalent non-UK securitisations.