On 17 July 2025, ESMA published the results of its consultation on private securitisations (see TSI kompakt of 31 March). The aim was to introduce a simplified disclosure template for private transactions, better tailored to supervisory needs and eliminating unnecessary reporting fields. Market participants generally welcomed the initiative but criticised the proposal’s complexity, its limited scope, and the risk of legal inconsistency. The majority therefore opposed a short-term implementation. ESMA has now followed this recommendation and will only consider possible adjustments after completion of the Level-1 reform of the Securitisation Regulation (SECR).
ESMA summarised the key results from stakeholder feedback as follows:
- Postpone adjustments: Amendments to the technical standards should only be made after changes to the Level-1 framework. This could help avoid unnecessary costs and potential double burdens.
- Supervisory focus: Disclosure for private transactions should in future be more closely aligned with supervisory needs. Providing investor information via regulatory templates is not necessary for private transactions due to their bilateral nature.
- Proportionality: Templates should in future follow the proportionality principle more closely: fewer fields, no loan-level data, reduced frequency.
- Extend scope: According to market opinion, simplified disclosure should also be possible for third-country transactions.
Holistic approach required
Market participants call for simplification, but not for an isolated partial reform. A consistent, practical redesign of disclosure could make private securitisations more efficient and investor-friendly. Otherwise, the limited scope and high compliance burden could undermine the attractiveness of cross-border transactions in particular.
Outlook
ESMA currently does not plan any changes. The authority intends to feed the consultation results into the ongoing review of SECR. This reflects the foreseeable supervisory lead role of the EBA under the European Commission’s proposal for SECR. ESMA is therefore not announcing a new consultation at this time. We will continue to closely monitor the reform of the Level 1 framework.