UK Regulated Covered Bond Regulations 2008 - Summary Of The FSA's Regulated Covered Bond Sourcebook - Part 3 of 4

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Keywords: FSA, covered bonds, debt

securities, asset pool, UCITs Directive, Capital Requirements

Directive, Sourcebook

Originally published March 2008

As mentioned before, the Sourcebook sets out the guidance,

directions and rules made by the FSA under the Regulations,

which in particular relate to:

The registration formalities and requirements;

The notification requirements towards the FSA;

The FSA's enforcement process and procedures.

This part 3 contains a brief description of the guidance,

directions and rules set out in the Sourcebook.

3.1 Registration

In order to issue Regulated Covered Bonds, the issuer and

the covered bonds (programme) must be registered in the

relevant Register of the FSA. This section 3.1 sets out some

practical aspects of the registration procedure of the FSA.

Submission Of Application Form And Payment Of

Registration Fees

In order to become admitted to both Registers, the issuer

must submit an application for registration form, which:

will cover the registration of both the issuer and the

covered bond, because the FSA will not consider applications

for issuer registration in isolation from the application for

registration of the covered bond; and

must be submitted for each proposed issuance of covered

bonds (even if it is already registered in the Register of

Issuers), unless the regulated covered bonds will be issued

under a programme (as the UK structured covered bonds issued

to date have been). In the latter case, the issuer merely has

to notify the FSA of each issuance by submitting a

"series issuance notification form"; and

will not be considered by the FSA until it has received a

registration fee of £25,000 (by way of bankers draft,

cheque or credit transfer). This fee is non-refundable (even

in case the application is not successful); and

must be verified by a senior manager of the issuer, who

also has to make a number of required confirmations in the

form (such as the confirmation that the arrangements relating

to the covered bond or the covered bond programme (as the

case may be) comply with the Regulations and the Sourcebook)

and consent to the FSA displaying their confirmation of

compliance with the Regulations and the Sourcebook on the

FSA's website.

Evidence Of Compliance To Be

Provided

According to the Sourcebook, the application form must

provide the relevant details of the covered bond or the covered

bond programme (as the case may be) and demonstrate how each of

the requirements of the Regulations and the Sourcebook will be

complied with.

In order to...