Press Releases

Press release: LMA publishes response to FCA / PRA consultations on reforms to UK securitisation requirements

London, 18 May 2026 – The Loan Market Association (LMA) has submitted its response to the Financial Conduct Authority (FCA) and Prudential Regulation Authority (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.

The LMA welcomes the regulators’ direction of travel, supporting a shift towards a more principles-based regime. Its 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 limit UK investors’ access to international markets.

The paper also highlights the need to revisit UCITS investment limits, which can act as a constrain on investment in securitisations and are not always well-suited to CLO transactions.

At the same time, the LMA believes the proposal could go further in achieving efficiency and proportionality in reporting, particularly in relation to the proposed CLO-specific template. The 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.

Jesse Beardsworth (Interim Head of UK & EU Public Policy & Regulatory) and Evelien Alblas (EU Regulatory and Public Affairs Manager):

"We welcome the FCA and PRA’s consultation on reforms to UK securitisation requirements, particularly the focus on simplifying requirements and supporting a more principles-based regime. We believe the proposals represent a positive step toward improving market efficiency and competitiveness while maintaining strong investor protections."

Notes to editors:

The full response document is available here.

Access the FCA / PRA consultation.

Media contact: 

For media enquiries or to discuss the LMA’s response and recommendations in detail, please contact Leyla Ghaffar-Zadeh, Head of Communications, LMA at Leyla.Ghaffar-zadeh@lma.eu.com.