FSA adopts regulations to facilitate special-purpose vehicles
The UK's Financial Services Authority (“FSA”) has adopted regulations to implement portions of the European Union's Reinsurance Directive that are designed in part to facilitate the expedited formation and management of special-purpose vehicles, which may be used for securitizations or other forms of alternative risk transfer arrangements. The proposals were described in a Consultation Paper, CP06/12, Implementing the Reinsurance Directive, which was published in June 2006 with a summary and a description of the Consultation Paper in a newsletter publication. A comment period followed. Rules were adopted by the FSA effective December 31, 2006. Special-purpose vehicle Rules and Guidelines may be found in the FSA's Handbook.
