Yesterday the High Level Forum on the Capital Markets Union, a body set up by the European Commission and headed by Thomas Wieser, published its final report which may be found here
The report is extensive and deals with a number of issues relating to the construction of deeper and broader capital markets in Europe. But, for our readers, the important bit starts on page 52. The Forum explicitly calls for growth in the European securitisation market and makes clear and specific recommendations as to practical steps which can be taken to achieve this laudable goal. These reflect suggestions and recommendations made by a number of market stakeholders, including PCS in its recent article.
Specifically, the Forum's report calls for improvements in the SRT process, the incorporation of synthetics in the STS regime, improved CRR and Solvency II calibrations, improved access for STS (and non-STS) securitisations to the LCR pools and the differentiation between private and public transactions when it comes to disclosure.
Not only is the report to be welcomed for its suggestions but also for the level of detail into which it goes (including, for example, a list of legislative norms that require amendments). PCS very much hopes and is optimistic that the European Commission will not only act on these excellent proposals but will be able to do so expeditiously.
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