Securitisation and Regulation News

EBA Consultation on STS Guidelines for Synthetics

The consultation period on the STS Guidelines for synthetic securitisations published by the EBA on 21 April (see TSI news from 24 April 2023) ended on 7 July. The STS Verification International GmbH ("SVI"), as an independent subsidiary of TSI, has through its activity as a third-party verifier very detailed insights into the practical implementation of the requirements of the Securitisation Regulation. SVI has used this expertise to provide detailed feedback to EBA on the individual guidelines during this consultation on STS guidelines for on-balance-sheet transactions.

TSI supports SVI response to EBA consultation on STS guidelines for synthetics

Due to the high level of competence of SVI with regard to the STS criteria, the TSI has refrained from issuing an additional statement and fully supports the SVI statement. TSI discussed this consultation intensively not only with SVI, but also with its partner network. The views expressed by the TSI partners are reflected in the SVI response.

Next steps

As next steps, EBA will now review the feedback from associations and market participants and implement it in an adjusted final draft. We expressly welcome the opportunity to participate in this consultation, as on-balance-sheet transactions have an important role to play in financing the transformation. Clear STS guidelines with a uniform understanding of the market participants and regulators are very conducive to this. Due to the Level III character, the guidelines are expected to enter into force soon after the final draft is published. We expressly point out that the guidelines should apply from publication on and not retroactively for running transactions. The complete SVI response can be found below:

SVI statement