The UK FCA Consultation Paper CP26/6 : Rules for reforming the UK Securitisation Framework has set out plans to change rules around securitisation, but with a warning about why any such changes need to be carefully considered.
The Paper (available here: https://www.fca.org.uk/publication/consultation/cp26-6.pdf) includes reference to the FCA supporting securitisations with regulation that is “clear, proportionate and results in high standards, thereby giving investors and issuers confidence to use these markets”.
However, it adds that lessons need to be learned from the past: “Securitisation markets played a role in the Global Financial Crisis (GFC), which then led to a new regulatory framework being implemented.”
“Our proposals for reform seek to maintain the core objectives of the post-GFC regulatory framework, introducing more principles-based requirements and making measured adjustments that reflect lessons learned from the operation of the existing rules. This will ensure that the framework is effective, responsive and fit for purpose.”
The Paper goes on to state the aims of the consultation. These include: “material simplification of our rules”, removal of “unnecessary burdens”, and giving UK investors “access to a broad range of investments to enable them to compete with their global counterparts and deliver competitive risk-adjusted returns”.
Commenting on the Paper, Ben Pott, international head of Public Policy and Government Affairs at BNY, said: “The FCA and PRA’s consultation is a timely and necessary intervention.”
“The UK securitisation market has the potential to become a more effective vehicle for risk diversification and provide an effective investment channel for investors. The direction of travel set out here – streamlining due‑diligence expectations, simplifying transparency requirements and reducing unnecessary operational burdens – is encouraging and addresses several of the constraints that have held the market back.
“We welcome the consultation’s focus on removing unnecessary friction from the securitisation framework. Expanding the UK securitisation market is a significant opportunity. These proposals are a meaningful step in that direction, and it is positive to see the FCA recognise the importance of alignment with parallel EU developments.
“However, further ambition will be needed. The next phase of policy should continue to simplify due‑diligence expectations, ensure prudential requirements reflect underlying risks, and maintain a framework flexible enough to accommodate innovation and cross‑border activity. With sustained follow‑through, securitisation can play a much larger role in freeing bank balance sheets, deepening market liquidity and directing capital to the real economy.”
The consultation closes on 18 May 2026.
Funds Europe in partnership with ALFI is hosting the Fund Finance Securitisation Forum – Managing Liquidity & Risk 2026 – which takes place 6 May, 2026 at A&O Shearman, London. The agenda includes insights into private credit ABL and evergreen structures.
To find out more about the event click here.
