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EU Commission launches consultation on the Securitisation Regulation

AUTHORs: Christian Donagh co-author(s): Alan Bunbury Services: Finance and Capital Markets DATE: 10/08/2021

We have written recently on various recent developments in relation to the EU Securitisation Regulation (“SR”), including on various amendments and guidance and the European Supervisory Authorities’ report on implementation of the SR. A further development took place on 23 July 2021 when the European Commission published a targeted consultation on the SR.

The purpose of the consultation is to gather feedback from market participants on the functioning of the SR ahead of the Commission’s formal review later this year. This is part of the Commission’s commitment in the capital markets union (CMU) action plan and also part of preparations for the report mandated by Article 46 of the SR.

The consultation seeks stakeholders’ feedback on a broad range of issues mandated by Article 46, including:

  • the effects of the SR, in particular whether the SR is considered to have been successful in meeting its main objectives (Section 1);
  • private securitisations, including the transparency requirements applicable to private securitisations and whether the definition of “private securitisation” requires adjustment (Section 2);
  • the need for an equivalence regime in the area of simple, transparent, standardised (STS) securitisations (Section 5);
  • disclosure of information on environmental performance and sustainability (Section 6); and
  • the need for establishing a system of limited licensed banks performing the functions of securitisation special purpose entities (SSPEs) (Section 7).

The consultation also seeks feedback on a number of additional issues identified by stakeholders and by the Joint Committee of the ESAs as having an impact on the functioning of the securitisation framework, including, for example, the jurisdictional scope of the SR.

The consultation will close on 17 September 2021.  The consultation will be of interest to market participants and industry bodies, given that the outcome of the consultation may impact on the content of any amendments to the SR proposed by the Commission as part of its Article 46 review.

For further information, please contact Richard Kelly, Turlough Galvin, Christian Donagh, Alan Keating,  Alan Bunbury or your usual Matheson contact.