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.