The Basel Committee on Banking Supervision (BCBS) and the International Organization of Securities Commissions (IOSCO) have issued a joint consultative document on the development of criteria to identify simple, transparent and comparable securitisation.
The consultative document identifies 14 criteria for simple, transparent and comparable securitisations. The purpose of the criteria is to provide a basis for the industry and the regulatory community to identify certain features of securitisations which may indicate those securitisations that lend themselves to less complex analysis and therefore could contribute to building sustainable securitisation markets. The criteria is not intended to serve as a substitute for investor due diligence but rather to identify and assist the financial industry’s development of simple and transparent securitisations. The criteria are non-exhaustive and non-binding.
The deadline for comments on the proposed criteria is 13 February 2015. In 2015 the BCBS will consider how to incorporate the final version of the criteria into the securitisations capital framework.