Securitisation meaning

This timeline shows key developments relating to the UK securitisation regime from January 2024 onwards For earlier milestones, see EU and UK Securitisation Regulations—timeline [Archived]. On 1 November 2024, Assimilated Regulation (EU) 2017/2402 (the UK Securitisation Regulation) no longer applied in the UK, and new securitisation rules issued by the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) came into effect. For insight into the revised UK framework, see Practice Note: The UK securitisation regime. 2026 17 February 2026 — PRA/FCA CP2/26 – Reforms to securitisation requirements; CP26/6: Rules for reforming the UK Securitisation Framework; Applying the FSMA 2000 model of regulation to the Capital Requirements Regulation The PRA and FCA have opened consultations on changes to the UK securitisation framework. The FCA suggests simplifying reporting, disclosure and due diligence obligations. The PRA intends to lessen firms’ compliance load by making the regime less prescriptive and adjusting the capital treatment of loans under the Mortgage Guarantee...

ARCHIVED This document is archived and no longer maintained. For more recent updates, see Checklists: UK securitisation regime-timeline and EU Securitisation Regulation-timeline. In September 2015, the European Commission unveiled the Action Plan for Capital Markets Union (the Plan). The Plan aims to integrate capital markets across the EU’s Member States, stimulate investment and support growth within the EU. It set out five principal steps to deliver a Capital Markets Union, including strengthening banks’ ability to lend, with a priority on reviving simple, transparent and standardised (STS) European securitisation. On 28 December 2017, Regulation (EU) 2017/2402 (the EU Securitisation Regulation) and the related Securitisation Prudential Regulation (EU) 2017/2401-amending the Capital Requirements Regulation (EU) 575/2013-were published in the Official Journal of the EU. These rules entered into force on 17 January 2018 and have applied directly across the EU from 1 January 2019. They cover securitisation transactions where the securities are entered into on or after that date, and any securitisation that creates new securitisation positions on or after...

ARCHIVED : This Checklist has been archived and is not maintained . STOP PRESS: From 1 November 2024, the UK’s new securitisation framework took effect, annulling and supplanting the onshored EU legislative regime. Although the UK rules broadly preserve the substance of the prior onshored EU approach, they part company in several notable respects, including scope, risk retention, transparency, due diligence and STS designation. For a side-by-side of the STS criteria under both frameworks, see Practice Note: UK and EU securitisation regimes—comparison. On 17 June 2025, the European Commission issued its long-anticipated review of the EU Securitisation Framework, together with an extensive legislative package proposing amendments to the EU Securitisation Regulation (Regulation (EU) 2017/2402), the EU Capital Requirements Regulation (Regulation (EU) No 575/2013), the EU Solvency II Delegated Regulation (Commission Delegated Regulation (EU) 2015/35) and the EU Liquidity Coverage Requirement Delegated Regulation (Commission Delegated Regulation (EU) 2015/61). Proposed changes to the EU Securitisation Regulation cover, among other matters, risk retention, due diligence, transparency, STS on-balance sheet securitisations and...

In this issue: Banking and Finance case round-up Lending Security Debt capital markets Derivatives Regulation for derivatives lawyers Securitisation and structured products Restructuring Technology in banking & finance transactions Regulation for banking lawyers Scotland Daily and weekly news alerts New and updated content Useful information Banking and Finance case round-up Banking & Finance—November 2024 case round-up For a summary of the cases we flagged in Banking & Finance during October 2024, refer to News Analysis: Banking & Finance—November 2024 case round-up. Lending Re KRF Services (UK) Ltd [2024] EWHC 2978 (Ch) The judgment addressed a High Court application for an administration order, heard in that court, and centred on two key points of interest: (i) whether the sole director’s resolution to seek an administration order was effective; and (ii) the effect of the sanctions regime. On the first question, the court examined the company’s unamended Model...

In this issue: Sustainable finance and ESG weekly round-up Moveable Transactions (Scotland) Act 2023 Football Governance Bill LIBOR and benchmarks Sustainable finance Debt capital markets Derivatives Regulation for derivatives lawyers Technology in banking & finance transactions Structured products and securitisation Regulation for banking lawyers Banking & Finance Highlights 2024/2025 Daily and weekly news alerts New and updated content Useful information Sustainable finance and ESG weekly round-up For this week’s coverage of Sustainable finance and ESG developments, please see: Sustainable finance and ESG weekly round–up—19 December 2024. Moveable Transactions (Scotland) Act 2023 Moveable Transactions (Scotland) Act 2023 (Commencement) Regulations 2024 SSI 2024/378: From 1 April 2025, the outstanding provisions of the Moveable Transactions (Scotland) Act 2023 (the Act) will come into effect. See: LNB News 17/12/2024 9. Moveable Transactions (Forms) (Scotland) Regulations 2024 SSI 2024/379: These prescribe the forms to be used for the purposes set out...

UK Care No 1 Ltd v HMRC [2026] UKUT 90 (TCC) The appellant, UKC1, was a Guernsey-incorporated company. It served as the issuer of loan notes within a securitisation structure for the BUPA group. Those notes were placed at a discount and incurred transaction expenses. UKC1 recognised the obligation on an amortised cost basis. That accounting treatment reflected the discounted issue price and the associated fees borne at issue time. (CTA 2009, s 327 is inapplicable where fair value accounting is adopted.) In 2016—when BUPA intended to dispose of certain care homes included in the collateral package—BUPA acquired UKC1 and it became resident for UK tax. UKC1 subsequently bought back the loan notes. The terms for early repayment were set by a ‘Spens’ (or ‘make whole’) provision, which required payment of whichever was greater: the principal sum, or the present value of future cash flows, discounted by reference to a named gilt...

This Practice Note This Practice Note sets out how the Prudential Regulation Authority (PRA) conducts its formal administrative procedures under the Financial Services and Markets Act 2000 (FSMA 2000), with particular emphasis on Part XXVI (Notices), alongside the PRA’s statements of policy and procedure for reaching decisions... Outcomes may involve supervisory steps—such as varying or imposing requirements—or formal enforcement, including a public censure or a financial penalty, directed at PRA‑authorised firms or individuals... It explains the PRA’s decision‑making routes for issuing statutory notices under FSMA 2000, namely: Supervisory Notices Warning Notices Decision Notices Final Notices Notices of Discontinuance The Note also sets out how subjects can make representations, including orally, at a hearing before PRA decision‑making bodies such as the Supervision, Risk and Policy Committee (SRPC) or the Enforcement Decision Making Committee (EDMC)... The Securitisation Regulation 2024 (SI 2024/102) broadened the PRA’s enforcement remit to cover firms engaged in securitisation that are not PRA‑authorised. Under the...

What is microfinance? The Consultative Group to Assist the Poor (CGAP) describes ‘microfinance’ as the provision of loans, savings and other basic financial services to the poor. Stakeholders interpret microfinance through their own lenses and thus tend to define it accordingly. Governments regard it as social protection. Donors emphasise its capacity to achieve poverty reduction. Commercial insurers see a pathway to large under-served markets. Analysts use it to spotlight the scale of the ‘bottom of the pyramid’. Academics consider it a crucial financial service for sustainable economic growth. These views broadly mirror those for conventional insurance, except for the clearly specified target group: low-income people. Put simply, microfinance is a collection of practices created to widen access to financial services (including loans, savings products, insurance and remittance services) for low-income clients. Typically, these clients are drawn from the poor populations deemed ‘unbankable or uncreditworthy by commercial banks’, for whom traditional sources of finance—lending in particular—are unavailable. Taken together, these...

What is repo? A repo, the market shorthand for a 'repurchase transaction', is an arrangement whereby one party (the seller) sells an asset to another (the buyer) with a simultaneous contractual undertaking that the seller will repurchase the asset from the buyer on a future date for a specified price agreed between both parties in advance. Any asset capable of being transferred from one person to another may, in principle, be the subject of a repo transaction. The assets most commonly used in repos are debt securities (bonds), equity securities (shares) and other financial assets, including loans and commodities. However, commodity repos can raise distinctive documentary, structural and legal issues, which are not addressed in this Practice Note. For guidance on commodity repos, see Practice Note: Commodity repo transactions and true sale considerations...

Signing and Closing Memorandum A Signing and Closing Memorandum is necessary to support the seamless completion of a sophisticated deal. This precedent signing and closing memorandum outlines the actions to be taken to complete a residential mortgage-backed securities ( RMBS ) transaction at closing. Further documents or actions might be needed, subject to the particular transaction...

Signing and Closing Memorandum A Signing and Closing Memorandum is needed to facilitate the orderly completion of a complex deal. This template signing and closing memorandum outlines actions to be undertaken to finalise a commercial mortgage-backed securities (CMBS) transaction. Further documents or actions might be necessary, subject to the particulars of the transaction in some cases...