The ESMA has published the results of its consultation on the disclosure templates from the beginning of this year (see TSI kompakt from 22 March 2024). In particular, it evaluates the feedback received from the market with regard to the four proposed options for the way forward. Unsurprisingly, ESMA concludes that it will wait until the Level 1 review of the securitisation regulation by the European Commission has been completed before substantially revising the templates.
The main results of the ESMA consultation at a glance
- ESMA received 35 responses from all sectors of the securitisation industry (sell-side, buy-side, service or IT providers, rating agencies and securitisation repositories).
- As described above, ESMA intends to await the review of the Level 1 text and to consult closely with the European Commission on the next steps.
- The market has largely voted unanimously for option C, i.e. a targeted revision of the templates (for a description of the four approaches proposed in the consultation, see TSI kompakt from 8 January 2024).
- Within Option C, however, ESMA also received some opposing feedback. Most participants are in favour of moving away from loan-level data requirements for highly granular portfolios and introducing a simplified template for private securitisations. The latter is seen in the market as the most urgent short-term adjustment. However, there were also some voices from the sell-side who were in favor of maintaining the status quo. Securitisation repositories also see the costs of changing the templates for private securitisations as being higher than the benefits in some cases.
- In addition, the importance of the ND options and their retention and possible expansion is emphasized.
Conclusion
It is regrettable that it has taken ESMA more than two years to review the transparency guidelines, but it is to be welcomed that is now refraining from making any far-reaching adjustments for the time being and wants to wait for the Level 1 review.