On 23 July 2021, the European Commission published a consultation looking into the functioning of the EU securitisation framework. The intention to consult was stated in the Commission’s action plan on the Capital Markets Union published in September 2020. This in turn stems from Article 46 of the EU Securitisation Regulation, which requires the Commission to present a report to the European Parliament and the Council on the functioning of the EU Securitisation Regulation, accompanied, if appropriate, by a legislative proposal by 1 January 2022.

The consultation, which is in the form of an online questionnaire, seeks market feedback on a wide range of issues, including:

  • The effects of the EU Securitisation Regulation.
  • Private securitisations.
  • Due diligence.
  • The need for an equivalence regime in the area of simple, transparent and standardised (STS) securitisations.
  • Disclosure of information on environmental performance and sustainability.
  • The need for establishing a system of limited licensed banks performing the functions of securitisation special purpose entities.
  • Treatment of STS securitisations and asset-backed commercial paper (ABCP) securitisations for the liquidity coverage ratio.
  • Amendments to the Capital Requirements Regulation.

The consultation remain open until 17 September 2021. To view the consultation, please click here.

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