Joint associations' response to FCA and PRA CPs 26/6 and 2/26 on the UK securitisation framework/requirements
18 May 2026 ICMA, AFME, UK Finance and CREFCE have today responded to the FCA and PRA CPs 26/6 and 2/26 on the UK securitisation framework/requirements.
The associations broadly welcome the PRA and FCA’s proposed securitisation reforms, describing them as a significant step towards a more proportionate and internationally competitive UK framework.
The associations particularly support:
- The move to a more principles-based and simplified regime for due diligence, transparency and reporting requirements;
- Efforts to reduce cross-border friction and improve the usability of the UK securitisation framework post-Brexit;
- The introduction of “L-shaped” risk retention rules, which have been a long-standing industry request;
- The regulators’ willingness to review the scope and application of securitisation conduct rules.
At the same time, the industry is seeking further clarification and refinements in several areas, including:
- Confirmation that synthetic excess spread can count towards the first-loss component of L-shaped retention in synthetic SRT securitisations;
- Additional guidance on proposed re-securitisation rules;
- Further engagement on the application of conduct rules and prudential requirements under Basel 3.1.
The associations also warn that the UK should closely monitor the EU’s more growth-oriented securitisation reforms to avoid creating competitiveness and level playing field concerns for UK markets.
View the Joint Associations’ response to FCA and PRA CPs 26/6 and 2/26 on the UK securitisation framework/requirements
View the Joint Associations’ feedback on FCA CP 26/6 templates
