...Covered bonds have been issued out of the UK since 2003, pursuant to contractual agreements whereby covered bonds issued by a financial institution are guaranteed by a special purpose vehicle (SPV) to which a portfolio of mortgage loans is transferred. The UK Regulated Covered Bond (RCB) Regulations 2008 established a legislative framework expanding on existing arrangements. Programmes recognised and registered by the Financial Services Authority (FSA) are compliant according to HM Treasury with article 22.4 of the EU Directive on Undertakings for Collective Investment in Transferable Securities (UCITS). Such compliance is in line with other European legislative covered bonds. + ...
