MFA submits comment letter to FCA on rules relating to securitisation

MFA encouraged the UK Financial Conduct Authority (FCA) to enhance UK capital markets by eliminating redundant securitisation due diligence requirements in a comment letter submitted today. The letter is a response to the FCA’s consultation paper on rules relating to securitisation and builds off a recent MFA letter sent in June 2023.

The letter highlights a number of concerns regarding the requirements:

  • The requirements put UK alternative investment fund managers (AIFMs) at a disadvantage globally
  • They do not account for fundamental differences between UK AIFMs and banks
  • The requirements have restricted investment opportunities
  • UK AIFMs are already subject to risk management obligations

MFA believes removing these regulations will increase capital investment in the UK and optimize risk management on behalf of UK investors, allowing UK AIFMs to compete on an international scale.