PCS was invited by EUROFI to contribute a substantial article for their regulatory update paper. EUROFI, a platform for exchanges between the financial services industry and the public authorities, has long provided a forum in which the future of European securitisation has been debated and this paper was written to accompany the EUROFI web event that replaces the traditional EUROFI conference that was to be held in Zagreb this April.
In the article, which may be found here PCS examines why the STS reforms, for all their achievements, have not sparked a renewal of the European securitisation market, why such a renewal is not just beneficial but essential to the future of the European economy and what practical steps can and should be taken to fulfil the aims of the legislation. The key argument of the article is that European policy makers never completed the STS reforms. Having crafted the most detailed and demanding securitisation standard in the world, they did not follow through with the regulatory changes appropriate to such a standard. The article also examines issues around synthetic securitisation and the SRT rules and procedures that will be necessary to allow finance to flow into the European economy.