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The United Kingdom Consults on Significant Changes to Its Securitisation Framework
Reprinted from: The Banking Law Journal | 06/11/2026Cadwalader partner Alix Prentice and special counsel Assia Damianova recently wrote an article featured in The Banking Law Journal examining the UK’s proposed overhaul of its securitisation regime, which would replace several prescriptive rules with a more principles-based framework for due diligence, disclosure and monitoring.
The article explains that the FCA and PRA would ease investor verification burdens, simplify transparency requirements and introduce targeted exemptions to the resecuritisation ban, while also clarifying credit-granting and risk-retention rules.
It also highlights the market effects of the reforms, including reduced compliance costs, greater flexibility for UK investors and increased divergence from EU securitisation rules that may complicate cross-border transactions.
The article notes that the consultation closed on 18 May 2026, with final rules expected later in the year and implementation anticipated in Q2 2027.
Read the full article.
