The Securitisation Regulations 2018

Made: 3rd December 2018

Laid before Parliament: 4th December 2018

Coming into force: 1st January 2019

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PART 1 — Introductory provisions

Citation and commencement

1

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Interpretation

2

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Directly applicable EU regulations

3

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Designation of competent authorities

4

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PART 2 — Disciplinary measures and procedures

Temporary prohibition relating to management functions

5

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Temporary prohibition relating to management functions: obligations on originator, sponsor or SSPE

6

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Public censure

7

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Financial penalties

8

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Statements of policy

9

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Statements of policy: procedure

10

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Restriction on penalties

11

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PART 3

CHAPTER 1 — Third party verifiers

Application for authorisation to provide a third party verification service

12

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Determination of an application for authorisation to provide a third party verification service

13

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Temporary withdrawal of authorisation to provide a third party verification service

14

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Temporary withdrawal of authorisation to provide a third party verification service: procedure

15

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Cancellation of authorisation to provide a third party verification service on the initiative of the FCA

16

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Cancellation of authorisation to provide a third party verification service at request of third party verifier

17

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Register of third party verifiers

18

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CHAPTER 2 — Warning notices and decision notices

Warning notice

19

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Decision notice

20

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CHAPTER 3 — Temporary ban on STS notifications

Imposition of a temporary ban

21

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Procedure for the imposition, variation or revocation of a temporary ban on STS notifications

22

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CHAPTER 4 — Right to refer to the Tribunal

Right to refer a matter to the Tribunal

23

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PART 4 — Miscellaneous provisions

Consultation in relation to taking certain enforcement action

24

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Transparency requirements for originators, sponsors and SSPEs of private securitisations – power of direction

25

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Informing the FCA of STS notifications – power of direction

26

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Application of the Act and secondary legislation

27

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Minor and consequential amendments

28

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Review

29

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SCHEDULE 1 — Application and modification of the Act and secondary legislation

Disciplinary powers

1

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The Tribunal

2

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Information gathering and investigations

3

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Disciplinary powers under Part 14

4

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Restrictions on disclosure of information

5

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Injunctions and restitution

6

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Notices

7

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Offences

8

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Limitation on powers to require documents

9

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Consultation in relation to taking certain enforcement action

10

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Penalties and fees

11

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12

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Exemption from liability in damages

13

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14

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The Financial Services and Markets Act 2000 (Service of Notices) Regulations 2001

15

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The Financial Services and Markets Act 2000 (Over the Counter Derivatives, Central Counterparties and Trade Repositories) Regulations 2013

16

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SCHEDULE 2 — Minor and consequential amendments to primary and secondary legislation

The Act

1

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The Financial Services and Markets Act (Regulated Activities) Order 2001

2

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The Payment to Treasury of Penalties (Enforcement Costs) Order 2013

3

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The Financial Services and Markets Act 2000 (Qualifying EU Provisions) Order 2013

4

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The Financial Services Act 2012 (Relevant Functions in relation to Complaints Scheme) Order 2014

5

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The Public Interest Disclosure (Prescribed Persons) Order 2014

6

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Signed

Mike Freer — Paul Maynard — Two of the Lords Commissioners of Her Majesty's Treasury — 2018-12-03

Explanatory note

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Footnotes

[^f00001]: S.I. 2012/1759.

[^f00002]: 1972 c.68. Section 2(2) was amended by section 27 of the Legislative and Regulatory Reform Act 2006 (c.51) and by section 3 of, and the Schedule to, the European Union (Amendment) Act 2008 (c.7). By virtue of the amendment of section 1(2) by section 1 of the European Economic Area Act 1993 (c.51), regulations may be made under section 2(2) of the European Communities Act to implement obligations of the United Kingdom created or arising by or under the Agreement on the European Economic Area signed at Oporto on 2nd May 1992 (Cm 2073) and the Protocol adjusting the Agreement signed in Brussels on 17th March 1993 (Cm 2183).

[^f00003]: 2000 c. 8.

[^f00004]: OJ L 347, 28.12.2017, p.35.

[^f00005]: Section 2B was substituted by the section 6(1) of the Financial Services Act 2012 (c.21).

[^f00006]: Section 398 was amended by paragraph 36 of Schedule 9 to the Financial Services Act 2012 (c.21) and S.I. 2013/1773. There are other amendments but none is relevant.

[^f00007]: Section 393 was amended by paragraph 32 of Schedule 9 to the Financial Services Act 2012 (c.21).

[^f00008]: Section 421ZA was inserted by section 48(2) of the Financial Services Act 2012 (c.21).

[^f00009]: OJ L 345, 31.12.2003, p.64. Relevant amendments were made by Directive 2008/11/EC of the European Parliament and of the Council of 11 March 2008 (OJ L 76, 19.3.2008, p.37), Directive 2010/73/EU of the European Parliament and of the Council of 24 November 2010 (OJ L 327, 11.12.2010, p.1) and Directive 2010/78/EU of the European Parliament and of the Council of 24 November 2010 (OJ L 331, 15.12.2010 2003, p.120).

[^f00010]: Section 66 was amended by paragraph 14 to Schedule 5 to the Financial Services Act 2012 (c.21), sections 28 and 32 and paragraph 5 of Schedule 3 to the Financial Services (Banking Reform) Act 2013 (c.33) and section 12 and paragraph 8 of Schedule 2 to the Financial Services Act 2012 (c.28). Section 66A was amended by section 32 of the Financial Services (Banking Reform) Act 2013 (c.33), section 25 of and paragraph 16 of Schedule 4 to the Bank of England and Financial Services Act 2016 (c.14), S.I. 2015/1864, 2016/225 and 2016/568. Section 66B was amended by section 32 of the Financial Services (Banking Reform) Act 2013 (c.33), section 25 of and paragraph 17 of Schedule 4 to the Bank of England and Financial Services Act 2016 (c.14). Section 67 was amended by paragraph 15 of Schedule 5 to the Financial Services Act 2012 (c.21), paragraph 9 of Schedule 2 to the Financial Services Act 2010 (c.28) and paragraph 6 of Schedule 3 to the Financial Services (Banking Reform) Act 2013 (c.33). Section 68 was amended by paragraph 16 of Schedule 5 to the Financial Services Act 2012 (c.21). Section 69 was amended by paragraph 17 of Schedule 5 to the Financial Services Act 2012 (c.21), paragraph 10 of Schedule 2 to the Financial Services Act 2010 (c.28), and paragraph 7 of Schedule 3 to the Financial Services (Banking Reform) Act 2010 (c.33). Section 70 was amended by paragraph 18 of Schedule 5 to the Financial Services Act 2012 (c.21).

[^f00011]: Part 9 was amended by section 23 of the Financial Services Act 2012 (c.21), section 4 of the Financial Services (Banking Reform) Act 2013, paragraph 83 of Schedule 9 to the Crime and Courts Act 2013 (c.22), S.I. 2010/22, 2013/1388, 2014/3329, 2016/680 and 2017/1064.

[^f00012]: Section 133 was substituted by S.I. 2010/22.

[^f00013]: Subsections (1), (5) and (7A) were amended by section 23 of the Financial Services Act 2012 (c.21).

[^f00014]: Section 133A was substituted by S.I. 2010/22.

[^f00015]: Subsection (1) was amended by section 23 of the Financial Services Act 2012.

[^f00016]: Section 133B was substituted by S.I. 2010/22. Subsection (1) was amended by section 23 of the Financial Services Act 2012.

[^f00017]: Part 11 was amended by paragraph 54 of Schedule 26 to the Criminal Justice Act 2003 (c.44), paragraph 33 of Schedule 7 to the Counter Terrorism Act 2008 (c.28), section 18 of and Schedule 2 to the Financial Services Act 2010 (c.28), Schedule 12 to and paragraph 8 of Schedule 18 to the Financial Services Act 2012 (c.21), paragraphs 36 and 37 of Schedule 2 to the Bank of England and Financial Services Act 2016 (c.14), paragraph 9 of Schedule 2 to the Investigatory Powers Act 2016 (c.25), S.I. 2001/1090, 2005/1433, 2007/126, 2011/1043, 2012/2554, 2013/1773, 2015/575 and 2016/680. There are other amendments but none is relevant.

[^f00018]: Section 167 was amended by paragraph 7 of Schedule 12 to the Financial Services and Markets Act 2000 (c.8), S.I. 2007/126 and S.I. 2015/575.

[^f00019]: Section 168 was amended by S.I. 2007/126, paragraph 33 of Schedule 7 to the Counter-Terrorism Act 2008 (c.28); Schedule 2 to the Financial Services Act 2010 (c.28) , Schedule 12 to the Financial Services Act 2012 (c.21), paragraph 11 of Schedule 3 to the Pension Schemes Act 2015 (c.8) and S.I. 2016/680.

[^f00020]: Subsection (4) was amended by paragraph 8 of Schedule 12 to the Financial Services Act 2012 (c.21), paragraph 33 of Schedule 7 to the Counter-Terrorism Act 2008 (c.28), paragraph 16 of Schedule 2 to the Financial Services Act 2010 (c.28), S.I. 2007/126, 2012/2554, 2013/1773, 2016/225, 2016/680 and 2017/1255.

[^f00021]: Subsection (6) was substituted by the Financial Services Act 2012, section 41 and paragraph 8 of Schedule 12.

[^f00022]: Section 169 was amended by Schedule 12 to the Financial Services Act 2012 (c.21); S.I. 2011/1043 and S.I.2016/680.

[^f00023]: Section 169A was inserted by section 18(3) of the Financial Services Act 2010 (c.28) and amended by paragraph 10 of Schedule 12 to the Financial Services Act 2012 (c.21).

[^f00024]: Section 170 was amended by paragraph 11 of Schedule 12 to the Financial Services Act 2012 (c.21).

[^f00025]: Subsections (3A) and (7) were inserted by S.I. 2007/126.

[^f00026]: Section 174 was amended by paragraph 12 of Schedule 12 to the Financial Services Act 2012 (c.21) and S.I. 2016/680.

[^f00027]: Section 175 was amended by paragraph 13 of Schedule 12 to the Financial Services Act 2012 (c.21).

[^f00028]: Section 176 was amended by paragraphs 14 and 17 of Schedule 12 to the Financial Services Act 2012 (c.21).

[^f00029]: Section 204A was amended by paragraph 10 of Schedule 9 to the Financial Services Act 2012 (c.21), section 23 of the Bank of England and Financial Services Act 2016 (c.14), S.I 2013/1773, 2016/225 and 2015/1864.

[^f00030]: Section 348 was amended by paragraph 26 of Schedule 2 to the Financial Services Act 2010 (c.28), paragraph 18 of Schedule 12 to the Financial Services Act 2012 (c.21), paragraph 5 of Schedule 8 to the Financial Services (Banking Reform) Act 2013 (c.33), paragraph 45 of Schedule 2 to the Bank of England and Financial Services Act 2016 (c.14) and S.I. 2016/1239.

[^f00031]: Section 349 was amended by section 964 of the Companies Act 2006 (c.46), paragraph 19 of Schedule 12 to the Financial Services Act 2012 (c.21), S.I. 2006/1183, 2007/1093 and 2011/1043.

[^f00032]: Section 352 was amended by paragraph 54 of Schedule 26 to the Criminal Justice Act 2003 (c.44).

[^f00033]: Part 25 was amended by paragraphs 19, 21, 23, 24 and 25 of Schedule 9 to the Financial Services Act 2012 (c.21), paragraph 3 of Schedule 10 to the Financial Services (Banking Reform) Act 2013 (c.33) and S.I. 2007/126, 2013/1773, 2015/1755, 2016/225 and 680. There are other amendments but none is relevant.

[^f00034]: Subsection (12) was inserted by section 37 of and paragraphs 1 and 19 of Schedule 9 to the Financial Services Act 2012 (c.21).

[^f00035]: Subsection (15) was inserted by section 37 of and paragraphs 1 and 21 of Schedule 9 to the Financial Services Act 2012 (c.21).

[^f00036]: Subsection (13) was inserted by section 37 of and paragraphs 1 and 23 to Schedule 9 to the Financial Services Act 2012 (c.21).

[^f00037]: Part 26 was amended by paragraph 11 of Schedule 4 to the Regulation of Investigatory Powers Act 2000 (c.23), sections 13 and 24 of and paragraphs 28 and 29 of Schedule 2 to the Financial Services Act 2010 (c.28), sections 17, 18, 19 and 24 of and paragraph 37 of Schedule 8, Schedule 9 and paragraph 8 of Schedule 13 to the Financial Services Act 2012 (c.21), section 4 of and Schedule 3 to the Financial Services (Banking Reform) Act 2013 (c.33), paragraph 43 of Schedule 10 to the Investigatory Powers Act 2016 (c.25), S.I. 2005/381, 2005/1433, 2007/126, 2007/1973, 2009/534, 2010/22, 2010/747, 2012/916, 2013/1388, 2013/3115, 2014/2879, 2015/1755, 2016/225, 2016/680, 2016/715, 2016/1239 and 2017/701. There are other amendments but none is relevant.

[^f00038]: Subsection (1ZB) was substituted for subsection (1) as originally enacted by section 37 of and paragraphs 1 and 30 of Schedule 9 to the Financial Services Act 2012 (c.21).

[^f00039]: Subsection (4A) was inserted by S.I. 2013/3115.

[^f00040]: Subsection (5A) was inserted by section 24 of the Financial Services Act 2012 (c.21).

[^f00041]: Subsection (8A) was inserted by S.I. 2014/2879.

[^f00042]: Subsection (8B) was inserted by S.I. 2016/680.

[^f00043]: Subsection (8C) was inserted by S.I. 2016/715.

[^f00044]: Subsection (8D) was inserted by S.I. 2017/1127.

[^f00045]: Subsection (8E) was inserted by S.I. 2018/135.

[^f00046]: Subsection (11) was substituted by section 24 of and paragraphs 1 and 28 of Schedule 2 to the Financial Services Act 2010 (c.28).

[^f00047]: Section 398 was amended by paragraph 36 of Schedule 9 to the Financial Services Act 2012 (c.21) and S.I. 2013/1773, 2015/1882, 2016/680, 2017/701, 2018/135 and 2018/698.

[^f00048]: Section 400 was amended by paragraph 37 of Schedule 9 to the Financial Services Act 2012.

[^f00049]: Section 401 was amended by paragraph 38 of Schedule 9 to the Financial Services Act 2012 (c.21) and S.I. 2013/1881 and 2016/1239.

[^f00050]: Subsection (3AB) was inserted by S.I. 2016/1239.

[^f00051]: Subsection (3A) and (3B) were inserted by section 37 of and paragraph 38 of Schedule 9 to the Financial Services Act 2012 (c.21).

[^f00052]: Section 403 was amended by paragraph 40 of Schedule 9 to the Financial Services Act 2012 (c.21).

[^f00053]: Section 415B was inserted by paragraph 41 of Schedule 9 to the Financial Services Act 2012 (c.21). It was amended by paragraph 15 of Schedule 3 to the Financial Services (Banking Reform) Act 2013 (c.33) and S.I. 2016/680.

[^f00054]: Schedule 1ZA was inserted by Schedule 3 to the Financial Services Act 2012 (c.21) and is amended by section 109 of, paragraph 7 of Schedule 8 to and paragraph 4 of Schedule 10 to the Financial Services (Banking Reform) Act 2013 (c.33), section 29 of the Bank of England and Financial Services Act 2016 (c.14) and S.I. 2013/1773. There are other amendments but none is relevant.

[^f00055]: Part 25 was amended by paragraphs 19, 21 and 23 of Schedule 9 to the Financial Services Act 2012 (c.21) and S.I. 2016/680. There are other amendments but none is relevant.

[^f00056]: Schedule 1ZB was inserted by Schedule 3 to the Financial Services Act 2012 (c.21) and is amended by section 109 of the Financial Services (Banking Reform) Act 2013 (c.33), section 16 of and paragraphs 26 and 50 of Schedule 2 to the Bank of England and Financial Services Act 2016 (c.14) and S.I. 2018/1115. There are other amendments but none is relevant.

[^f00057]: Paragraph 25 was amended by section 109 of the Financial Services (Banking Reform) Act 2013 (c.33).

[^f00058]: Paragraph 33 was amended by section 109 of the Financial Services (Banking Reform) Act 2013 (c.33).

[^f00059]: S.I. 2001/1420.There are amendments but none is relevant.

[^f00060]: S.I. 2013/504.

[^f00061]: OJ L 201, 27.7.2012 p.1.

[^f00062]: Section 391 was amended by sections 13 and 24 of and paragraph 28 of Schedule 2 to the Financial Services Act 2010 (c.28), section 24 of and paragraph 30 of Schedule 9 to the Financial Services Act 212 (c.21), section 4 of the Financial Services (Banking Reform) Act 2013 (c.33) and S.I. 2012/916, 2013/1388, 2013/3115, 2014/2879, 2015/1755, 2016/225, 2016/680, 2016/715, 2017/701, 2017/1127 and 2018/135.

[^f00063]: Subsection (8E) was inserted by S.I. 2018/135.

[^f00064]: OJ L347, 28.12.2017, p.35.

[^f00065]: S.I. 2001/544.

[^f00066]: Article 35A was inserted by S.I. 2013/504.

[^f00067]: S.I. 2013/418.

[^f00068]: S.I. 2013/419.

[^f00069]: Subparagraph (m) was inserted by 2018/698. There are other amendments to Article 2(2) but none is relevant.

[^f00070]: Subparagraph (e) was inserted by S.I. 2014/3348. There are other amendments to Article 2(6) but none is relevant.

[^f00071]: Paragraph (2)(p) was inserted by S.I. 2018/698. There are other amendments to Article 3(2) but none is relevant.

[^f00072]: Paragraph (3)(n) was inserted by S.I. 2018/698. There are other amendments to Article 3(3) but none is relevant.

[^f00073]: Paragraph 2(p) was inserted by S.I. 2018/698. There are other amendments to Article 5(2) but none is relevant.

[^f00074]: Paragraph 5(o) was inserted by S.I. 2018/698. There are other amendments to Article 5(5) but none is relevant.

[^f00075]: Paragraph 2(r) was inserted by S.I. 2018/698. There are other amendments to Article 6(2) but none is relevant.

[^f00076]: S.I. 2014/1195.

[^f00077]: Paragraph 2(g) was inserted by S.I. 2017/1127. There are other amendments to Article 2 but none is relevant.

[^f00078]: S.I. 2014/2418 was amended by S.I. 2017/701. There are other amendments but none is relevant.

Editorial notes

References to technical standards