The Financial Services Authority’s statement that it is ready to introduce a regulatory framework for UK covered bonds has met with widespread approval and relief from market participants [see FSA takes the covers off, February issue]. The announcement, made at the European Covered Bond Council’s meeting on February 7, ends a two-year period when UK borrowers operated at a disadvantage to many of their continental European competitors.
Good regulation
“We view the introduction of a covered bond regime that is compliant with EU legislation as consistent with our principles of good regulation,” says the FSA’s Paul Sharma, its head of prudential standards.
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