Adoption of proposed Regulation on securitisation

Further information:

The proposal aims to regulate the development of a simple, transparent and standardised securitisation market. It replaces rules relating to due diligence, risk retention, transparency and supervision with a uniform regime. It provides a framework to identify simple, transparent and standardised (STS) securitisations and to allow investors to analyse associated risks.

Background information:

Securitisation is a financing technique by which homogeneous income-generating assets - which on their own may be difficult to trade - are pooled and sold to a specially created third party, which uses them as collateral to issue securities and sell them in financial markets.

The European Commission launched a consultation from February to May 2015 to gather information and views from stakeholders on a common framework for the market. In September 2015, a proposal for a Regulation on securitisation was adopted.

The Council of the European Union adopted its positionn on this draft law in December 2015, while the European Parliament's ECON Committee approved its stance im June 2016. Interinstitutional negotiations led an informal agreement on a compromise text in May 2017. The Parliament endorsed this document on 26 October.

The Council of the European Union adopted on 20 November 2017 a proposed Regulation aimed at facilitating the development of a securitisation market in the EU.

EPRS: Briefing: Common rules and new framework for securitisation http://www.europeansources.info/record/common-rules-and-new-framework-for-securitisation-eu-legislation-in-progress-3/

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