Market updates and sector developments

The Financial Conduct Authority’s (FCA) and Prudential Regulation Authority (PRA) have published policy statements on new securitisation rules. Alongside the UK Treasury’s draft statutory instrument on securitisation, which was published last week, the changes will come into force on 1 November and will replace EU securitisation regulations.

The PRA’s statement was published alongside the Securitisation Instrument 2024 section of the PRA Rulebook.

The publication of the documents follow consultations on proposed plans published by the PRA and FCA in July 2023 and August 2023 respectively, while the government also presented its “near final” statutory instrument and policy note in July. Implementation was initially scheduled for Q2 of 2024.

Following those publications, industry sources told SCI that there appeared to be some welcome changes to retained regulations ‘onshored’ after Brexit, but that the British government was unlikely to secure the bonfire of regulations it had set out to achieve (SCI 15 August 2023).

The PRA said it received “largely supportive” responses to its 2023 consultation, though there were “a number of requested changes”. These included a delay to the implementation date, better alignment between FCA and PRA rules drafting, and transitional provisions for impacted securitisations that were set up prior to the implementation of the proposed new rules. The PRA said all of these areas have been addressed, while it has also responded to requests for clarification in other areas.

In a statement, PCS said it would be “reading both with interest, as will no doubt all market participants with an interest in UK transactions”.

In other news…

New York Mortgage Trust selects Computershare
Computershare Corporate Trust (formerly known as Wells Fargo CTS) has rolled out its new RMBS trustee services, with New York Mortgage Trust (NYMT) becoming the team’s first client. NYMT has appointed Computershare as indenture trustee for NYMT 2024-BPL1, with the provider also providing document custodian, securities administrator and paying agent services on the transaction.

Kenny Wastell