The Treasury has agreed to make certain technical amendment to regulated activities so that special purpose vehicles - used for securitisation purposes - will be excluded from regulation.
The Treasury's policy had been to ensure that where regulated mortgage contracts have been securitised and are being administered by an authorised person they were not being treated as carrying on regulated activities in relation to those securitised contracts.
But lenders were concerned that an administration agreement could be construed as constituting the making of 'arrangements' by the special purpose vehicle to enter into new regulated mortgage contracts with borrowers. As a result, entering into that administration agreement could therefore be a regulated activity.
Now technical changes will clarify the position.