In the securitisation consultation, which was concluded in September 2021 (see article Securitisation and Regulation News 28 September 2021), the European Commission had already announced the Call for Advice on the Securitisation Regulation to the Joint Committee of supervisors. Accordingly, the prompt implementation is to be welcomed.
The scope of the information requested in the Call for Advice on the Securitisation Regulation goes far beyond the recently concluded consultation. Thus, essential areas of securitisation regulation and supervisory treatment in the CRR are covered, in particular questions on the capital weighting of securitisations according to the CRR and the consideration in liquidity ratios of the LCR. Detailed information on the development of volumes and performance by asset class and country is requested.
In addition, the following are to be taken into account
- the STS status,
- true sale versus synthetic balance sheet securitisations,
- ABCP and non-ABCP securitisations, as well as
- the distinction between placed and retained transactions.
Against this backdrop, the 1 September 2022 deadline for response seems reasonable and it is to be hoped that the supervisory authorities (EBA, ESMA, EIOPA) will rather fall short than exceed this deadline.
The European Commission thus has three issues of European securitisation regulation under review:
- First, the review of the Securitisation Regulation (EU) 2017/2402 according to the recently concluded consultation,
- secondly, adjustments to the capital and liquidity rules in the CRR in accordance with the Call for Advice, and
- thirdly, the consideration of ESG & Sustainable Finance, which is to be aligned with the EU Green Bond (EuGB) standard, which will not come into force before 2023.
It can be assumed that all three areas will go to Parliament and Council in a legislative proposal. Adoption is not expected before 2023.