The U.K. Parliament’s amendment to its Banking Act 2009 that now restricts the power to modify trust arrangements involved in failing banks sheds some clarity that proves beneficial to structured finance, said analysts at Moody’s Investors Service.

Prior to the Amending Order, Section 34(7) of the Act was interpreted by some market participants as giving the U.K. authorities broad power to modify the terms of trust arrangements, including the power to modify the beneficial interests of third parties.

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