Alerts Archive
LMA responds to FCA / PRA consultations on reforms to UK securitisation requirements
18 May 2026On 18 May, the LMA submitted its response to the FCA and PRA consultations on the review of the UK securitisation framework - a critical piece of work given the role securitisation, particularly CLOs, plays in supporting financing to the real economy and contributing to the UK’s global competitiveness.
We welcome the regulators’ direction of travel, supporting a shift towards a more principles-based regime. Our response advocates for an investor-led approach to due diligence, more flexible risk retention and disclosure requirements, and the removal of overly prescriptive rules that risk adding cost and limiting UK investors’ access to international markets. We also highlight the need to revisit UCITS investment limits, which can act as a constraint on investment in securitisations and are not always well-suited to the structure of CLO transactions.
At the same time, we believe the proposal could go further in achieving efficiency and proportionality in reporting, particularly in relation to the proposed CLO-specific template. Our response emphasises that reforms should reflect how the market operates in practice, support efficient capital flows, and avoid disincentivising participation in a market that remains critical to corporate financing.
Click here to read our response.