August 29, 2018

European Parliament, or EP, published a briefing to support the work of ECON committee on the scrutiny of delegated acts. The briefing provides an overview of the implementing measures, for which drafts are being prepared by ESAs.

The focus is on the discussion of August 29, 2018 on the state-of-play of the implementing measures under the new Securitization Regulation (2017/2402) and the Regulation No. 2017/2401. Regulation 2017/2401 amends the Capital Requirements Regulation (CRR) on the treatment of regulatory capital requirements for credit institutions that originate, sponsor, or invest in securitizations. The implementing measures, for which drafts are being prepared by ESAs, include the following:

  • ESMA is working on technical standards on information in the simple, transparent, and standardized (STS) notification and information to be provided in the application for the authorization of a third party verifying STS compliance. Additionally, draft for operational standards and access conditions, along with draft for regulatory and technical standards on application procedures for repositories, is expected by the third or fourth quarter of 2018 while technical advice on the Delegated Act on fees for securitization repositories is expected by the third quarter of 2018.
  • EBA is working on standards on the homogeneity of asset classes and on risk retention
  • ESAs are jointly working on the amendment to European Market Infrastructure Regulation (EMIR) regulatory technical standards on bilateral margins for derivatives related to STS securitizations and the draft for the standards is expected by the third quarter of 2018.

EC adopted, in September 2015, a proposal for STS Regulation and an amendment to CRR to identify features that make securitization transactions STS and to ensure that incentives are in place to manage the risks of these instruments, based on clear eligibility criteria. The framework entered into force on January 17, 2018 and applies from January 01, 2019. The STS Regulation empowers EC to adopt delegated acts and implementing acts, including regulatory and implementing technical standards.

 

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Keywords: Europe, EU, Banking, Securities, CRR, Securitization, STS Securitization, Briefing, Regulatory Technical Standards, European Parliament