Last week, the PCS response to the Commission's securitisation consultation was filed. PCS is strongly supportive of the Commission's approach. In our response we recommend that the process of crafting the definition of "simple, transparent and standardised" securitisation be anchored in the excellent work of the European Banking Authority. Our response also focuses on the issue broached by the Commission regarding the operationalisation of the potential new regulatory scheme. PCS had expressed the view that the success of the new regulatory scheme in revitalising a European securitisation market on a safe basis would depend not only on the definitions and rules of such scheme but on the practical issues of how the scheme could be operated. In particular, the regulatory framework should not unnecessarily deter investors from investing. Following our earlier paper, "the illusory promise of self-attestation", we have set out in great detail how the proposed regulatory scheme could be made to work in an annex to our response. In particular, in the section entitled "Questions that should be frequently asked", we deal with some of the legitimate concerns with our proposals.
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