The Treasury Committee has published the responses from the Government, FCA and BoE to its report on lessons to be learned from the failure of Greensill Capital.
The Committee’s recommendations specific to financial services focused on reforms to the Appointed Representatives regime and reform of the Change in Control regime in respect of ownership of banks.
Treasury and FCA’s responses focus on the problems caused by the definition of “securitisation” potentially being too narrow – and explaining why extending it to include the onward sale of a pool of loans comprising supply chain finance would in some respects at least be inappropriate. It also notes that work on a review of the AR regime is already underway, and that a project has now started to consider how change in control applications are dealt with and what changes might need to be considered.
The BoE focuses on disclosure of information between it and regulators, following the criticism of how long BoE took to inform Treasury of Greensill’s control problems