Bank of England and ECB respond to the EU Consultation on securitisation

The Bank of England and the ECB released a joint-response to the European Commission Consultation on securitisation.  In their response they appear curiously to favour issuer self-certification of quality.  This approach, which is not that of the PCS, is quite a bold one in the light of the events that precipitated the financial crisis.  It remains to be seen whether it is one that commends itself to policy makers and investors who suffered the consequences of the sales by issuers of purportedly high quality securitisations that then suffered such dramatic losses.