MFA submitted a letter to the Financial Conduct Authority (FCA) in response to its consultation on reforms to the UK securitisation framework. The letter argues for a discrete set of remaining frictions be removed to enable the reforms to deliver their full benefit.
MFA encourages further attention to the following areas:
- Remove duplicative due diligence requirements that increase costs and limit investment opportunities.
- Recognize equivalent non-UK regulatory regimes to facilitate cross-border investment.
- Broaden the definition of securitisation sponsors to better reflect current market practices.
- Streamline transparency and disclosure requirements while preserving access to key information for investors.
- Further align the UK framework with its objective of supporting competitive and well-functioning securitisation markets.
