Member

Finally, I turn to the Securitisation (Amendment) (No. 2) Regulations 2024. The SI extends a temporary arrangement allowing UK banks to treat EU securitisation products as though they originate from the UK, provided that they meet the standards of the simple, transparent and standardised framework. This means that banks and insurance firms holding such products may be able to benefit from lower capital and liquidity requirements. The current arrangement is due to expire at the end of December 2024, which would mean that no additional EU STS securitisations would be able to enter into the temporary arrangement after this date. This could impact on the range of investment options for UK market participants, so the Government are legislating to extend this arrangement to June 2026. This extension will allow UK authorities to make a more informed decision about the non-time-limited designation of EU STS securitisation products. This decision should take into consideration the recent EU securitisation regulation, adopted in June 2024. These regulations are expected to be implemented by the three EEA EFTA states over 2025. The extension granted by this instrument will ensure that a single decision can be taken with respect to the EU single market.