The U.K. Prudential Regulation Authority has published a Consultation Paper, setting out the PRA's proposals on its approach to supervision under the new EU securitization framework that will take effect from January 1, 2019. The incoming EU framework consists of: (i) the Securitisation Regulation, which imposes general requirements for all EU securitization activity and outlines the criteria and process for designating certain securitizations as "Simple, Transparent and Standardised"; and (ii) revisions to the banking securitization capital framework within the Capital Requirements Regulation.
The PRA proposes to:
The new EU securitization framework will take effect from January 1, 2019. The revisions to Supervisory Statement, "The Internal Capital Adequacy Assessment Process (ICAAP) and the Supervisory Review and Evaluation Process (SREP)" and the new Supervisory Statement will also take effect from this date.
The amendments to the Supervisory Statement "Securitisation" are equally applicable to the current CRR and the amended CRR and will therefore take effect immediately after publication of a policy statement following the consultation period.
The PRA invites comments on the consultation by August 22, 2018.
View the Consultation Paper (PRA CP 12/18).