1. The Treasury may by regulations designate a country or territory in relation to securitisations of descriptions specified in the regulations.

2. The power in paragraph 1 is exercisable only if the Treasury are satisfied that the law and practice which applies in the country or territory, in relation to securitisations of the descriptions specified, has equivalent effect (taken as a whole) to applicable UK law.

3. "Applicable UK law" means:

(a) this Regulation, as it applies to STS securitisations, and

(b) the Securitisation Regulations 2018 (S.I. 2018/2188), as those regulations apply to STS securitisations.

4. In making regulations under paragraph 1, the Treasury must have regard, in addition to any other matters they consider relevant, to whether the FCA (and, where relevant, the PRA) have established effective cooperation arrangements with the competent authorities of the country or territory.