On 14 February 2023, the European Banking Authority (EBA) published a Final Report on draft regulatory technical standards (RTS) on the homogeneity of the underlying exposures in simple, transparent and standardised (STS) securitisation under Articles 20(14), 24(21) and 26b(13) of the Securitisation Regulation, as amended by Regulation (EU) 2021/557.

The draft RTS build on the original work done in the context of RTS on homogeneity for non-ABCP and ABCP securitisation, as the conditions determining the homogeneity of the underlying exposures are naturally closely linked and in order to ensure a level playing field for non-ABCP, ABCP and on-balance-sheet securitisations.

Furthermore, the draft RTS amend the original RTS on homogeneity for non-ABCP and ABCP securitisation. While extending their scope to include on-balance-sheet securitisations, the draft RTS establish the same conditions for the homogeneity of the assets for all types of securitisations (non-ABCP, ABCP and on-balance-sheet securitisations). They carry over a significant part of the provisions on homogeneity set out in the previous RTS, with some modifications. These modifications aim at ensuring consistency with the new mandate and providing further clarity on specific requirements.

Finally, in order to ensure a continuation of existing securitisation transactions, transitional provisions have been introduced for those securitisations that have been notified as STS and whose securities were issued before its application date. This ensures that existing transactions will continue to remain STS compliant.

The draft RTS will be submitted to the European Commission for endorsement. Following submission, the draft RTS will be subject to scrutiny by the European Parliament and the Council before being published in the Official Journal of the European Union.