The German financial industry has taken the opportunity to participate in the Targeted Consultation of the EU Securitisation Regulation (EU) 2017/2402 according to Article 46 (see also article Securitisation and Regulation News of 23 July 2021). The market consultation conducted by the EU addressed various areas of the Securitisation Regulation. The aim is to make necessary improvements and correct operational obstacles. Together with issuers, banks, legal experts and investors, TSI has prepared and submitted a joint opinion. It has become apparent that the form of private securitisation, which is of elementary importance for financing the real economy, deserves special attention. These mostly bilateral securitisations are financed either through ABCP programmes or directly through the bank balance sheet and the client-bank relationship is similar to that found in traditional corporate banking. Bilateral or syndicated loans are also not necessarily communicated to the general public. Accordingly, there is a need for a focused revision of the very extensive rules on transparency under Article 7 of the EU Securitisation Regulation for private securitisations.
As expected, another focus is on ESG & Sustainable Finance and the question of how the principles of the EU Green Bond (EuGB) Standard are applied to securitisations. The aim here is to avoid a formal approach and to allow a look-through to the originators. Only in this way can the targeted approach of taxonomy-compliant use of funds be guaranteed. Following this Targeted Consultation of the EU Securitisation Regulation, the European Commission will issue a Call for Advice to the European supervisory authorities (EBA, ESMA, EIOPA), so that the further schedule cannot yet be estimated.
