Securitisation Regulation: Difference between revisions
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* [[ | * [[Prime Collateralised Securities]] (PCS) | ||
* [[Prospectus]] | * [[Prospectus]] | ||
* [[Prospectus Regulation]] | * [[Prospectus Regulation]] | ||
Latest revision as of 10:12, 28 December 2024
European Union (EU) - EU law - retained EU law.
The EU Securitisation Regulation (EU) 2017/2402 applies generally to securitisations issued on or after 1 January 2019.
The Securitisation Regulation legislative package introduced severe penalties (including fines of up to 10% of annual net turnover on a consolidated basis) for non-compliance applied to issuers, original lenders, originators and sponsors.
It repealed the main securitisation provisions in the formerly separate legislation for banks (the Capital Requirements Regulation, or "CRR"), insurers (Solvency II) and fund managers (the Alternative Investment Fund Managers Directive (AIFMD) regime).
It replaced them with a harmonised securitisation regime applicable to all institutional investors including UCITS and pension funds.
Treasurers need to sharpen focus on identifying securitisation activities and implementing robust process to ensure compliance with both the Securitisation Regulation and the related Prospectus Regulation.
The Securitisation Regulation also introduced a concept of "simple, transparent and standardised" (or "STS") securitisations that are regulated more lightly than other securitisations.
- Excessive capital charges for STS
- "In September 2024, Draghi recommended changes to revitalise EU securitisation and CMU [including]:
- • a cut in current STS capital charges that exceed corresponding actual risks – a bone of contention shared with PCS, which says the growth of EU securitisation is being held back not by the high standards of the STS (simple, transparent and standardised) regime, but by insufficient capital relief for the STS transactions..."
- Mario Draghi, former president of the European Central Bank - quoted in The Treasurer - Issue 4 of 2024, p18.
See also
- Capital adequacy
- Capital charge
- Capital markets union (CMU)
- Capital relief
- Capital Requirements Regulation
- CDO
- CMBS
- Covered bond
- European Central Bank (ECB)
- European Union
- Factoring
- Issuer
- Law
- Originator
- Prime Collateralised Securities (PCS)
- Prospectus
- Prospectus Regulation
- Regime
- Regulation
- Retained EU law
- Securitisation
- Securitisation special purpose vehicle
- Securitisation swap
- Security
- Significant Risk Transfer
- Solvency II
- Sponsor
- SSPE
- STS
- Sukuk
- Transaction
- Transparent
- Undertaking for collective investments in transferable securities
- Whole business securitisation
