The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.
BANKING

Covered bonds: Call for covered bond calm in face of delay

The problem is with time rather than the legislation or its implementation, say analysts.

The UK Treasury has delayed the implementation of the UK’s recognized covered bond law until March 6 from its originally planned date at the beginning of January. Although some have reasoned that this is because of last-minute objections raised by the UK Investment Management Association (IMA) concerning, among other things, insolvency procedures, the actual reason is far more administrative. "Industry worked closely with [the UK Treasury] and the FSA on the development of the proposed covered bonds regime," says Rob Robinson, covered bond analyst at Merrill Lynch. "However, many of the consultation responses were informed by market events over the summer, which raised new issues for consideration. It was made apparent to industry by the authorities upon receipt of these responses that the previous timetable would not be attainable. Fundamentally there is nothing wrong with the legislation or with the approach being taken towards its implementation."

If one of the larger banking institutions and a small-time outfit both commented or made requests for information, the FSA and the Treasury would have to give each an equal weighting. Although this is a fair and decent way to go about things, it does require a lot of time, especially considering the sheer volume of feedback received by the authorities, Robinson says.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree