As expected, the EU Commission has started its preparation of the review of the Securitisation Regulation according to Art. 46 with a targeted consultation with market participants.
The Securitisation Regulation, which has been applicable since 2019 and was amended on 6 April 2021, stipulates that DG FISMA, as the responsible Directorate General in the EU Commission, will submit a report on the functioning of the Securitisation Regulation by 1 January 2022. The relevance of a good performing securitisation market for the recovery of the real economy and the completion of the European Capital Markets Union (CMU) was also confirmed in the final report of the High Level Forum CMU and included by the EU Commission in its action plan in September 2020.
Accordingly, the consultation that is now starting is very welcome, with the focus on the following topics:
- the impact of the regulation on the securitisation market
- private securitisations
- equivalence regime for non-EU entities regarding STS
- disclosure of information on the topic of ESG and sustainable finance
In addition, the questionnaire asks for feedback on a number of other issues identified in the joint committee of competent supervisors (ECB, EBA, ESMA, EIOPA) as having an impact on the functioning of the securitisation framework. These also include important topics on capital adequacy (CRR), capital relief securitisations (SRT), consideration in liquidity management (LCR) and treatment with insurance investors (Solvency II).
Against this background, a broad participation of issuers and investors in the consultation should be sought for a targeted improvement of the legal framework; TSI will actively accompany this process.
The consultation will run until 17 September 2021, after which a round table event is planned by DG FISMA.
Further information can be found at:
To the targeted consultation on the functioning of the EU securitisation framework and
to the consultation document (pdf)
