UK permanent equivalence regime for EU and EEA STS introduced

The UK Securitisation (Overseas STS Equivalence) (European Union, Iceland, Liechtenstein and Norway) Regulations 2026 have been laid before Parliament. The Regulations introduce a permanent equivalence regime for European securitisations designated under the EU Securitisation Regulation as "simple, transparent and standardised" (STS). The effect of UK equivalence is that such securitisations benefit from preferential treatment under various UK regimes, including in relation to regulatory capital requirements. It is worth noting that there is no reciprocal recognition of UK STS securitisations.

The permanent equivalence regime will replace the existing temporary recognition regime which is due to expire on 30 June. Accordingly, the Regulations will come into force at 11:00pm on 30 June.

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