The European Commission announced changes to the EU securitisation framework [1] in its legislative package published in June 2025. It has now received responses from the Council and the Parliament [2] is currently preparing its final position.

In the UK, the FCA and PRA published parallel consultations on changes to the UK framework in February 2026, the most significant changes since Brexit [3].

Below we highlight the key elements of the respective packages and compare the current positions of each jurisdiction.

1.          Transparency Requirements

Many of the proposed changes in both jurisdictions apply to transparency requirements:

Trade Repository Reporting:

-   UK: An end to the requirement for manufacturers [4] to report information to securitisation repositories, replacing it with a requirement to make available information to investors.

-   EU: Debating the extent to which private securitisations should be subject to repository reporting requirements.

Investor and regulatory reporting

-   UK: Proposing to delete the templates for reporting to investors, inside information and significant events.

-   EU: A reduction in at least 35% of the number of data fields currently applying to public securitisations and a review of the classifications of mandatory versus optional data fields.

-   EU: A simplified template for private securitisations based on ESMA’s consultation [5].

2.       Public v Private Securitisations

The distinction between public and private securitisations is being revisited:

UK: Removal of the distinction between public and private securitisation for the purposes of transparency requirements.

EU:  The Commission’s original proposal to widen the definition of public securitisation is opposed by the Parliament, who are looking to maintain the current position which allows listing on regulated markets for technical reasons (rather than for secondary market liquidity purposes).

3.          Investor Due Diligence

Both jurisdictions are looking to simplify investor due diligence obligations:

UK: Moving from checklists to a principles-based approach and replacing prescriptive verification requirements.

UK: Removal of requirement for investors to verify simple, transparent, standardised (STS) status.

UK: Changes to the requirements for investors to verify risk retention, credit granting and the manufacturers provision of sufficient information, moving from prescriptive requirements to guidance.

UK: Clarification of information which has to be made available to investors including the removal of the requirement to provide a transaction summary where there is no requirement for a prospectus.

EU: Reduced requirements for due diligence in relation to:

-   Investments in senior tranches.

-   Repeat transactions where there are no material changes.

-   Transactions backed by guarantees from multilateral development banks (MDBs).

-   First loss tranches where at least 15% of the portfolio is guaranteed or held by entities such as sovereigns, central banks or MDBs.

EU: Allowing the delegation of due diligence, subject to investors retaining legal responsibility.

EU: Reduced exemption on checks for EU based sell-side parties.

EU: Allowing investors to complete due diligence up to 15 days after the acquisition. 

EU: Council preference for investors being able to use information on third-country issuers which is ‘substantively equivalent’ to SECR transparency standards, rather than full adherence to disclosure templates.

EU: Disagreement on the Commission’s addition of administrative sanctions on investors for failure to conduct due diligence, with Council and Parliament preferring to leave the position as is.

4.          Risk Retention Requirements

UK: Introduction of ‘L-Shaped Modality’ as an alternative method of calculating risk retention requirements.

EU: waivers on retention where a first loss tranches of at least 15% is guaranteed or held by specific publicly entities such as governments and MDBs.

5.          Capital Requirements

UK: Proposed introduction of new capital treatment for single loan residential mortgage securitisations using the IRB approach.

UK: A proposed alternative capital treatment for exempted resecuritisation positions (see below).

EU: Amendment to Liquidity Coverage Ratios in respect of holding securitisation positions and Solvency II changes.

EU: Significant Risk Transfer (SRT) tests replacement with principals-based approach.

EU: STS versus non-STS approach may be replaced by risk weight floor formulas for senior tranches.

EU: Proposal to reduce ‘excessively high’ p-factor, the calculation of capital to be held against securitisation positions.

EU: Significant Risk Transfer tests to be replaced by principles-based approach.

6.  Re-securitisation

UK: PRA authorised firms may claim an exemption from resecuritisation restrictions where they are created by tranched credit protections on an individual exposure basis.

UK: PRA authorised firms may resecuritise senior securitisation positions and use these for capital management and liquidity.

7.  Credit Granting

UK: Clarifications on requirements on manufacturers aimed at preventing low quality exposures being securitised.

8.  Single Loan Securitisations

UK: No requirements to complete underlying exposure templates.

UK: Exemption from PRA COREP reporting.

UK: Removal of prescribed reporting formats.

9.  Simple, Transparent, Standardised Securitisations

EU: Reduction of 100% homogeneity for SME securitisations to 70%.

EU: Unfunded credit protection may be provided by Solvency II insurance entities.

[1] The Securitisation Regulation (EU 2017/2402), the Capital Requirements Regulations (EU 575/2013), together with harmonising amendment to Solvency II and UCITS regulations.

[2] The EU Parliament acting through its Committee on Economic and Monetary Affairs.

[3] See FCA Consultation Paper 26/6 and PRA Consultation Paper 2/26. Changes are proposed to the FCA Handbook and the PRA Rulebook, respectively. Some changes to the Securitisation Regulations 2018 (SI 2018/1288) will need to be made by statutory instrument.

[4] Meaning originators, original lenders, sponsors and/or securitisation special purpose entities.

[5]  ESMA consults on revised disclosure requirements for private securitisations / Regulatory - The blog on banking supervisory law / PwC Deutschland

Want to know more? Get in touch!

Keith Blizzard

March 2026

Temple Consulting is a consultancy of financial services experts in UK, EU and international law and regulation and Temple Square Chambers provided legal advice and representation. At Temple we have capital markets, securities trading, legal documentation and regulatory change specialists, making us an ideal partner for all your financial regulatory needs. 

Keith Blizzard is a Barrister and specialist with over 20 years’ experience in securitisation, banking and capital markets.