News - PCS

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30/10/2019

PCS improves the functionality of its verification reports

Having reached out to the investor community and asked what PCS could do to improve the quality of their STS due diligence, we were told that what was really missing from our STS Verification reports was the capacity to focus immediately on those issues individual investors felt were the most challenging on any given deal. Attentive to our mission to assist all stakeholders in the market, we have now introduced our new STS Verification report format with new functionality. With the new format, investors (and any other interested party) can consult the index of contents and click on those specific […]

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19/10/2019

Erratum

Following a request for a recount by perspicacious market participants, we confirm that the earliest date for the entry into force of the data RTS is early February and not, as erroneously communicated in Friday's post, late January.

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18/10/2019

The most anticipated release of the year is out, and it's not "The Joker"

Apologies for the slight delay in bringing out this news, but the PCS team has been most busy this week. On Wednesday though, the European Commission finally brought out the keenly awaited data RTS, including the many annexes. This sets out the data disclosure requirements that will apply to all European securitisations. (We should note here that the vexed issue of what qualifies as a "European securitisation" for these purposes remains unsettled - do the data requirements apply only to securitisations issued by European entities or do they apply to all securitisations sold in Europe, so snaring non-European issuers). This […]

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25/09/2019

Securitisation regulation, the next chapter: EBA launches consultation on synthetic securitisation

Today, the EBA released a consultation on synthetic securitisation and STS. This two months consultation is designed to inform the EBA in the preparation of a report that it has been instructed to prepare by the European Commission on how an STS standard may be crafted for synthetic/risk transfer securitisations. This report, in turn, was requested of the Commission by the European Parliament. The European Parliament was looking into the possibilities of introducing a similar scheme to that of the current STS regime which is today only available for “true sale” securitisations. Although this may seem, at first glance, a […]

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04/09/2019

EBA goes digital on STS

Yesterday the EBA announced that it had added the STS Regulation to its online Interactive Single Rulebook and Q&A. In addition to allowing market participants (and members of the general public with odd tastes for arcane financial regulations) to access the EBA’s guidelines, this will also enable them to ask questions on any aspect of the criteria where it is felt require clarification under the EBA’s continuing power to issue guidelines. In PCS’ experience this will be a vital tool, going forward as we can attest to the not unsubstantial number of issues of a highly technical nature that arise […]

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31/07/2019

More about the B-word: the UK FCA puts out a consultation on STS

The UK Financial Conduct Authority has just issued a consultation relating to the format of future STS notifications in a world where the United Kingdom may no longer be part of the European Union. Entitled a “Draft technical standards on the content and format of STS notifications under the onshored Securitisation Regulation”, the consultation is the first to deal with the technical standards to be applied in the UK in the event of a departure by the UK from the EU without some transitional arrangements. Responses are required by August 27th, so if you had not yet found a good […]

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27/06/2019

PCS becomes authorised as a third-party verification agent in France

PCS is happy to announce that its Paris based entity, Prime Collateralised Securities (PCS) EU sas, has been authorised by the Autorité des Marchés Financiers (AMF) as a third-party verification agent pursuant to article 28 of the STS Regulation, effective immediately. With Prime Collateralised Securities (PCS) UK Limited, authorised in the United Kingdom by the Financial Conduct Authority (FCA) last March, the PCS initiative now possesses authorisation in two separate European Union jurisdictions. This will allow originators to select which entity they wish to contract with to obtain a verification of the STS status of their transactions. For so long […]

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03/06/2019

PCS hires Martina Spaeth as a senior analyst

PCS is very proud to announce that it has just hired Martina Spaeth as a senior analyst to work on STS verifications. Martina joins PCS from FMS Wertmanagement AoR in Munich which she joined following her long leadership of Unicredit’s German and Austrian securitisation business. With 22 years in the securitisation business, most of them in Germany, Martina adds both depth and breadth to PCS’ already impressive bench of analytical talent. In addition to German and English, Martina is also fluent in Spanish and French. Martina will join Mark, Fazel, Rob and Daniele in the certification of STS transactions.

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28/05/2019

Long awaited homogeneity RTS is out

Today, the European Commission formally adopted the regulatory technical standard (RTS) on homogeneity which may be found here. In order for a securitisation to be STS, it must meet a lengthy series of criteria. One of these criteria is that the assets in the securitised pool must be homogeneous in character. Because of the difficulties inherent in defining something as elusive as “homogeneity”, this criterion was the only STS criterion for which the Commission was required to issue an RTS. This it did today. This does not mean though that this RTS is law as of today. Once adopted, it […]

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26/03/2019

PCS announces its first STS verification: STORM 2019-I

Following its authorisation as a third party verification agent, PCS is pleased to announce its first engagement. Today, Obvion – one of the pre-eminent securitisation issuers in Europe – announced its STORM 2019-I transaction. As well as launching the deal in the market, Obvion indicated its intention for the transaction to be STS and for its STS status to be verified by PCS. This would make it the first STS RMBS announced in Europe as well as the first Dutch STS transaction and, of course, the first securitisation to be verified by PCS. As we intend to do for public […]

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21/03/2019

PCS as an authorised third party verification agent – Frequently Asked Questions

Now that PCS has received its authorisation as a third party verification agent we thought it useful to provide some answers to questions we have received from market participants and set out the scope of our STS verification activity. Q. What asset classes does the authorisation cover? A. It was a requirement of the ESMA drafted application process that a candidate third party verification agent should specify for which asset classes it was requesting to be authorised. PCS’ application in this respect is extremely broad and allows us to verify the STS status of pretty much all conceivable asset classes. […]

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19/03/2019

PCS is authorised as a third party verification agent

PCS is proud to announce that today PCS was authorised as a third party verification agent by the UK Financial Conduct Authority. This authorisation represents for us the culmination of nearly seven years of effort and the realisation of the original intent of the PCS initiative when it was launched back in 2012 at the Global ABS conference. PCS will be able to provide verifications for European originators of the STS status of their transactions in line with Article 27 of the STS Regulation with immediate effect. The authorisation is valid for the entire European Union and will continue to […]

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05/03/2019

New Regime, New PCS, New Website

As PCS begins to work on its first STS verifications, it is launching its brand new website, containing all the information needed to understand its new services. These include, of course, STS Verifications as outlined in the STS Regulations but also CRR Assessments and LCR Assessments and Article 270 Assessments. PCS will also, of course, continue to offer its PCS Labels, both for true sale and risk transfer deals. Despite delays in the issuance of key pieces of secondary legislations, PCS is hopeful that it will soon receive authorisation as a third party certification agent under Article 28 of the […]

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05/03/2019

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 […]

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25/09/2018

Rob Koning, Dutch securitisation veteran, joins PCS

It is with great pride that PCS announces that Rob Koning, of the Dutch Securitisation Association, has joined PCS. Rob, who has worked in securitisation for over 20 years, will continue to work for the DSA as well as helping PCS in maintaining its contacts with the issuer community. We are very grateful to Rob and to the DSA for making this possible and look forward to this next step in the development of PCS as we prepare for the new STS regime and for our application to become a third party certification agent. Rob will provide PCS with his […]

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06/08/2018

EBA publishes STS homogeneity and retention RTS'

The EBA has just published the draft STS homogeneity regulatory technical standard. PCS has only had the chance to give this just published text a cursory look, but it would seem that the final document stays very close to the draft which had been the subject of the consultation. With regard to the somewhat problematical fourth test relating to relevant risk factors though the EBA has introduced some welcome amendments. Together with the STS homogeneity RTS, the EBA also published the regulatory technical standard on risk retention. Strictly speaking, both these documents are drafts. They are now in the hands of the […]

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30/07/2018

PCS plans its future

In line with our publicly stated intent, PCS is working with regulatory authorities and market participants with a view to becoming authorised as a third party certification agent under the STS Regulation. This will see an expansion of PCS both in terms of staffing and in terms of geography. Anticipating Brexit, we – like many other financial sector firms – will be opening in the EU27. Specifically, we are looking to establish ourselves in Paris. In the coming months, PCS will also seek to bolster its staff of professionals who shall be tasked with verifying compliance of transactions with the […]

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11/07/2018

Helping transition to the STS Regime

Having concluded a series of seminars across Europe and at the request of many of the attendees, PCS has posted a copy of the seminar powerpoint presentation which can be found here. Building on this presentation, PCS has also prepared two additional documents designed to assist market stakeholders to prepare for the new STS securitisation regime coming into force in January of next year. The first is a broad introduction to the new regime, which tries to focus on key aspects – rather than being a laundry list of rules. It can be found here. The second document focused directly […]

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09/07/2018

Three new members join the PCS initiative

PCS is proud to announce three new members to the PCS Association. We are glad to welcome to the PCS initiative the leading securitisation law firms of Ashurst and Vieira de Almeida and J.P. Morgan Asset Management, a major ABS investor in Europe.

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04/06/2018

GLOBAL ABS Conference to begin in Barcelona

Tomorrow, the securitisation community will begin to gather once more in Barcelona for the annual Global ABS Conference. Always a highlight of the ABS annual calendar, this year’s conference will focus quite strongly on the coming of the new STS regime and what it means for the market. As always, PCS will be present and seeking to assist market participants I line with its mission. This year, we will attend under the banner of “making sense of STS” and have prepared various publications which seek to do just that. So we invite all of you who are planning to attend […]

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23/05/2018

No, we’re not there yet!

It has been a long and winding road towards the STS regime and many are weary. However, we are not quite there yet. Two key issues remain. The first is the issue of the interpretation of the STS criteria, which is the subject matter of an EBA consultation. The second is the data disclosure requirements, within the purview of ESMA. Getting these two issues right remains a key necessary step to a viable and, hopefully, vibrant European securitisation market. This is why PCS would like to remind all stakeholders of the upcoming public hearing to be held by the EBA […]

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20/04/2018

EBA consultation on STS criteria interpretation is released

Today the EBA released its consultation on the interpretations of the STS criteria (other than the homogeneity criterion which is the subject of a separate exercise). The EBA's guidelines and recommendations on interpreting the STS criteria which, under the STS Regulation, must be published by 18th October, 2018 are an essential part of the new STS infrastructure. Without them it will be impossible to determine what the requirements would be for a securitisation to be STS. Strong and sensible guidelines would provide a major boost to the likelihood of a successful STS regime and a commensurate growth in a safe […]

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19/03/2018

PCS responds to EBA and ESMA consultations

PCS has filed a response to the EBA’s consultation on the “homogeneity” criterion in the STS Regulation. The EBA’s general approach as disclosed by the consultative document is broadly sound and sensible. There is however some concern over how the fourth part of their suggested test (the “risk factors”) would work. In particular, PCS has some concerns over how issuers, investors and third party certification agents will be able to achieve a sufficient level of confidence in the choice of the relevant risk factor or risk factors. Our response does provide a possible solution which we think is both workable and […]

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05/03/2018

Invitation to PCS to a “Transition to STS” workshop

PCS is pleased to announce that it is holding a series of “Transition to STS” workshops across various European cities during March 2018. You can attend one of the the workshops either in person, or via webinar. The events will be held at the following venues, further details can be found by clicking into the relevant links below: Wednesday 7th March at 15:00 hrs CET in Paris: Taking place at White & Case at their Paris office. Invitation and Webinar instructions. Thursday 8th March at 09:00 hrs GMT in London: This event will be held jointly with Clifford Chance at their London […]

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26/02/2018

PCS responds to a disappointing Commission consultation on STS and LCR

PCS has filed a response to the European Commission’s consultation on possible changes to the Liquidity Coverage Ratio regime. The heart of the Commission’s proposal is the replacement of the current Level 2 securitisation assets with STS securitisations. As outlined in PCS’s response, this seems to us a disappointing suggestion. It is one that is difficult to reconcile with the intrinsic quality of STS securitisations on which the Commission itself and the European Parliaments and Council have worked so hard and with the desire of the European Union, through the Capital Markets’ Union project, to revitalise securitisation to fund European […]

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22/02/2018

PCS to provide analysis for market participants in first step to the market’s transition to the new STS Regime

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 […]

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19/02/2018

PCS launches STS Reports

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03/01/2018

Welcome to 2018…oh, and by the way, the clock is ticking.

One can be forgiven for missing it in the post-holiday lethargy but, on 28th December 2017, the new securitisation rules were published in the Official Journal. This saw the final stage of the entire legislative process. The STS text and the CRR text are now European law. The law will come into effect on 1st January 2019. The clock though has started to run on the many regulatory technical standards that will be required before it can be put into practice. These essential regulatory rules must be drafted by either ESMA or EBA before 18th July 2018 or 18th January 2019 depending on the […]

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03/01/2018

PCS publishes White Paper on bank deleveraging and the need to bridge the European funding gap. Go to pcsmarket.org/news

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03/01/2018

New PCS Transaction STORM 2013-II B.V. please go to pcsmarket.org/transactions

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