United Kingdom (and EU regulation)

Commission publishes proposed Regulation on securitisation

The European Commission has published a proposed:

Regulation laying down common rules on securitisation and creating a European framework for simple, transparent and standardised securitisation (the draft Securitisation Regulation). The objective of the legislative proposal is to restart a sustainable securitisation market that will improve the financing of the EU economy, while ensuring financial stability and investor protection. To do this the proposal aims to provide a regulatory platform upon which investor confidence can be built, to create more consistency and standardisation in the market and to put in place a more risk-sensitive regulatory framework (via amendment to the Capital Requirements Regulation and the Solvency II delegated act). However, the new EU framework will not replace the need for investors to conduct thorough due diligence;
Regulation amending the CRR. This draft Regulation amends the regulatory capital requirements for securitisations in the CRR in order to: (i) implement the regulatory capital calculation approaches set out in the Revised Basel Framework (articles 254 to 268); and (ii) introduce a re-calibration for STS securitisations, consistent with the recommendations of the European Banking Authority.