Joint-Committee of the ESAs response to the Commission is published - expected disappointment has materialised

Today, the Joint-Committee of the ESAs (grouping the EBA, EIOPA and ESMA) has published the long awaited response to the European Commission's Call for Advice on a possible reform of the securitisation capital calibrations under CRR and Solvency II. The response comes in two reports: one for banking and one for insurance. These can be found here and here. As they have just been published, we have yet to read the full conclusions. But the EBA announcement page gives some indication as to the proposals (or lack thereof) contained in the documents. For the CRR, the EBA has proposed to […]

PCS responds to the Joint-Committee's Consultation on Sustainable Disclosure for STS

PCS has responded to the Joint-Committee of the European Supervisory Authorities on its consultation regarding the optional disclosure relating to sustainability of the assets securitised through an STS transaction. Our response can be read here. Acknowledging the very narrow mandate that had been given the Joint-Committee and the challenges this posed, PCS nevertheless believes that this was the wrong mandate, at the wrong time for far too narrow a sub-set of capital market instruments. Through no fault of the committee, this feels like another siloed regulatory endeavour that risks again punishing unnecessarily securitisation and tilting yet further an already unlevel […]

Today, the Joint Committee of the European Supervisory Authorities (EBA, ESMA and EIOPA) issued their long-awaited report on the regulation of European securitisation. This report was mandated in the 2017 Securitisation Regulation and was supposed to provide a “tour d’horizon” of how the regulation was functioning and whether it was achieving its stated objective of reviving a safe and sound securitisation market. An initial review of the report would suggest that it appears to be a significant missed opportunity to address the shortcomings of the current regulatory framework and consequent failure to revive the market, and that it has not drawn the firm […]

Regulatory wobbles in the introduction of the new securitisation regime

On Friday, the Joint Committee of the ESAs, representing the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA) and the European Securities and Markets Authority (ESMA) released a ‘statement clarifying securitisation disclosure requirements and consolidated application of securitisation rules for credit institutions’. This statement represents the latest step by European institutions to deal with two substantial problems with the introduction of the new securitisation regime. Both issues are highly technical but very serious for a number of market participants. The first issue relates to the disclosure requirements for all European securitisations. The extent of the disclosure […]

Joint-Committee of the ESAs response to the Commission is published - expected disappointment has materialised

PCS responds to the Joint-Committee's Consultation on Sustainable Disclosure for STS

The Joint Committee of the ESAs’ report on securitisation is published

Regulatory wobbles in the introduction of the new securitisation regime