In the securitisation consultation that closed in September 2021 (see article TSI compact of September 28, 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 closed consultation. Thus, key areas of securitisation regulation and supervisory treatment are covered in the CRR, in particular issues relating to the capital weighting of securitisations under the CRR and consideration in LCR liquidity ratios. Detailed information on the development of volumes and performance by asset class and country is requested. In addition, the following must be taken into account
- the STS status,
- True sale compared to synthetic balance sheet securitisations,
- ABCP and non-ABCP securitisations as well as
- the distinction between placed and retained transactions.
Against this backdrop, the September 1, 2022 deadline for response seems reasonable and it is hoped that the supervisory authorities (EBA, ESMA, EIOPA) will fall short of this deadline rather than exceed it.
The European Commission is thus working on three issues relating to European securitisation regulation:
- First, the review of the Securitisation Regulation (EU) 2017/2402 in accordance with the recently concluded consultation,
- second, 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 should be based on the EU Green Bond (EuGB) standard, which will not come into force before 2023.
It is reasonable to assume that all three areas will go to Parliament and Council in a legislative proposal. Adoption is not expected before 2023.
To the more detailed information on the Call for Advice