Following the passage of the STS Regulation, many issuers have indicated their intention is to issue STS securitisations from 1st January 2019 (when the regulation comes into force) and, in the case of some, to issue in 2018 securitisations that are capable of being grandfathered under the STS Regulation.
However, to achieve STS status, a securitisation is required to meet an extensive set of regulatory criteria. Many are complex and not always straightforward to analyse. It must be recognised that transitioning from current market practice to the new STS regime will pose legal, structural, informational and IT challenges to issuers and investors
In line with its mission to strengthen the securitisation market as a sustainable investment and funding tool for both investors and originators, PCS has committed itself to assist market participants in transitioning to the new regime.
To do this, PCS will offer STS Reports in which we will analyse a securitisation transaction, against the criteria set out in the STS Regulation to determine whether the transaction meets those criteria and, if it does not, what criteria are not met and why.
Extensive details can be found on our site: www.pcsmarket.org
Since PCS has been very closely involved in all the stages of development of the new STS regime from its inception in 2012 through the technical work done by the EBA in 2014, the EU Commission’s proposals in 2015, the amendments of the Council and the EU Parliament in 2016 and the trilogue process in 2017, it is ideally placed to help market participants understand and transition to the new STS regime.
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