On 21 December 2023, the European Securities and Markets Authority (ESMA) issued a consultation paper on the securitisation disclosure templates under Article 7 of the Securitisation Regulation.
Article 7 of the Securitisation Regulation sets out the transparency requirements for all types of securitisations. These requirements include the disclosure of information related to the structure of the securitisation transaction, the underlying exposures, and the performance of the transaction.
In October 2022, the European Commission published a report on the functioning of the Securitisation Regulation, identifying a number of targeted improvements in its functionality. Among the areas marked for improvement, the Commission noted the necessity for a series of measures to improve the functioning of the transparency requirements and invited ESMA to review the technical standards pertaining the disclosure framework.
The consultation paper provides an overview of the background leading to the Commission’s invitation for a review of the disclosure framework and presents several options for the way forward. In summary, the options include:
- To put on hold the review of the templates until further changes to the Level 1 text.
- Maintaining the current framework with the introduction of a few amendments.
- A targeted review aimed at streamlining the disclosure templates and developing a dedicated template for private securitisation.
- A thorough review of the disclosure templates, aiming at a fundamental simplification of the framework.
The deadline for comments on the consultation paper is 15 March 2024.