The Malta Financial Services Authority (MFSA) has published the final draft of regulations on securitisation cell companies that are set to become law before the end of the year. The final draft was published as part of the authority’s feedback statement to responses received during the consultation period on draft securitisation cell company legislation that ended on 24 September 2014.
Securitisation cell companies (SCCs) are structures enabled by law to establish one or more cells established for the purpose of entering into securitisation transactions including asset-backed securitisation transactions and insurance risk securitisation transaction such as the issue of insurance linked securities.
In its feedback statement, the MFSA acknowledges the possibility that multiple originators may transact with SCCs making it an ideal solution for platform structures such as catastrophe cat-bond platforms.
In addition, the MFSA has fine-tuned provisions already existing in earlier drafts permitting the establishment of multi-currency cells: patrimonies of cells whose base currency would be different from the base currency of the non-cellular patrimonies.
The SCC Regulations are an adaptation of Malta’s legislation on cells in the insurance and funds industries and are tailored to suit the requirements of securitisation transactions.
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