19 December 2013 - LSS9/13 has been superseded by SS9/13.
From its commencement on 1 April 2013, the Prudential Regulation Authority (PRA) has adopted a number of legacy Financial Services Authority (FSA) policy publications relevant to the advancement of its objectives. This document, initially issued by the FSA in the form of three separate letters to the industry, has been adopted by the PRA as a Supervisory Statement as part of this process. The PRA may choose to review this legacy publication at a later stage.
The FSA wrote to UK banks in July 2009 in respect of certain synthetic securitisation transactions (frequently known as 'tranche protection trades' or 'high cost credit protection transactions'). This letter resulted in further correspondence between industry and the FSA between 2009 and 2011. The guidance contained in those letters has been consolidated into a Supervisory Statement.