UK

“Fair, clear and competitive” - problems with securitising consumer loans under new UK rules – new UK consumer credit regulations released

The July/August 2004 issue of Financial Regulation International included an article considering the impact on the securitisation industry of the Government’s intention to transform consumer credit regulation, as well as some of the rationale behind the Government’s proposals. At the time of going to press for that article, the new regulations implementing the Government’s reforms had not yet been published. Shortly afterwards, on 9 June 2004, four new regulations were laid before Parliament. This article considers the extent to which the Government’s reforms will have an effect on the securitisation industry by reviewing the relevant new regulations as well as the Government’s response to the consultation process.