As announced, the EU Commission today launched the consultation with market participants (“targeted consultation”) on the review of the Securitisation Regulation pursuant to Art. 46 of the Regulation.
The Securitisation Regulation, which has been applicable since 2019 and was amended on April 6, 2021, requires DG FISMA, as the responsible Directorate General in the EU Commission, to submit a report on the effectiveness of the Securitisation Regulation by January 1, 2022. The relevance of a functioning securitisation market for the recovery of the financial and real economy and the completion of the European Capital Markets Union (CMU) was also reiterated in the final report of the High Level Forum CMU. The EU Commission also included the topic in its action plan in July 2020 (cf. Article TSI compact“EU Commission takes important step towards finalizing EU Securitisation Regulation“.
Accordingly, the consultation now launched on the review of the Securitisation Regulation is very welcome. The focus is on the following topics:
- the impact of the regulation on the securitisation market,
- private securitisations,
- Equivalence principles and applicability to non-EU parties and
- Disclosure of information on the subject of ESG and sustainable finance
Feedback is also requested 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, broad participation in the consultation, especially by issuers and investors, should be sought for a targeted improvement of the legal framework. TSI will actively accompany this process.
The consultation will run until September 17, 2021 , and a roundtable event is planned afterwards by DG FISMA. Further information can be found on the page of the EU Commission and here goes to the document of the consultation.