In May 2021, the ECB published its decision to also supervise the credit institutions it supervises with regard to the reporting of securitisation transactions. Specifically, the powers relate to compliance with Articles 6 (risk retention), 7 (transparency) and 8 (prohibition of re-securitization) of the European Securitisation Regulation (EU) 2017/2402 and (EU) 2020/1224 (VV) .
Now, the ECB has issued draft guidance on how originators and sponsors should report securitisation transactions to the ECB. The aim is to achieve a uniform approach to facilitate the operational implementation of the supervision of Articles 6 to 8 VV. Explicitly, no new requirements are to be introduced.
The guidance requires that information on the following four areas be reported both at the time of origination and during the life of a securitisation transaction:
- First, the essential information about a securitisation transaction;
- secondly, the nature of the securitised receivables;
- third, information on the securitisation positions that have arisen, and
- fourth, a confirmation of compliance with the requirements of Articles 6 to 8 VV.
Based on initial analysis, the ECB’s proposals appear to be a reasonable compromise. On the one hand, uniform reporting is essential for efficient supervision. On the other hand, additional reporting obligations on credit institutions must be kept to an absolute minimum, as the existing transparency requirements for securitisations are already far above the requirements for other financial products in the EU.
TSI will accompany the consultation and prepare an opinion. The deadline is January 5, 2022, with the final guidance to be applied beginning April 1, 2022.
On the ECB’s guidance in the consultation
You can find more information here