Featured Product

    ESAs Clarify Impact on Status of STS Securitizations Post Brexit

    December 07, 2020

    ESAs (EBA, EIOPA, and ESMA) issued a statement that highlights the impact in the change of status of simple, transparent, and standardized (STS) securitization transactions after the end of the Brexit transition period on December 31, 2020. For a securitization transaction to qualify as an STS securitization, the Securitization Regulation (2017/2402) requires that the originator, sponsor, and the securitization special purpose vehicle (SSPE) be established in EU. Therefore, the securitization transactions labeled as “STS securitizations” will lose the STS status in EU in case one or all the securitization parties (originator, sponsor, SSPE) are established in the UK after the end of the transition period for Brexit. This will apply to STS asset-backed commercial paper (ABCP) securitizations and STS non-ABCP securitizations.

    ESMA is working with national competent authorities to ensure that the STS securitization public register of ESMA is up to date on January 01, 2021. The loss of STS status implies that the preferential capital treatment available for investments in this type of securitizations will come to an end. This will affect the institutional investors in EU, such as credit institutions and insurance entities, that hold positions in STS securitizations where the originator, sponsor, and/or SSPE are established in the UK. ESAs, therefore, advise these investors to assess the impact of this change of status on their balance sheet and investments ahead of December 31, 2020.

     

    Related Links

    Keywords: Europe, EU, UK, Banking, Insurance, Securities, Brexit Transition, STS Securitization, Securitization Framework, ABCP Securitization, ESAs

    Related Articles
    News

    ECB Amends Guideline on Temporary Collateral Easing Measures

    ECB published Guideline 2021/975, which amends Guideline ECB/2014/31, on the additional temporary measures relating to Eurosystem refinancing operations and eligibility of collateral.

    June 17, 2021 WebPage Regulatory News
    News

    EIOPA Releases Report on Artificial Intelligence Governance Principles

    EIOPA published a report, from the Consultative Expert Group on Digital Ethics, that sets out artificial intelligence governance principles for an ethical and trustworthy artificial intelligence in the insurance sector in EU.

    June 17, 2021 WebPage Regulatory News
    News

    HKMA to Increase Focus on Suptech and Regtech Cloud Adoption

    HKMA published the seventh and final issue of the Regtech Watch series, which outlines the three-year roadmap of HKMA to integrate supervisory technology, or suptech, into its processes.

    June 17, 2021 WebPage Regulatory News
    News

    EC Consults on Improving Transparency in Secondary Markets for NPLs

    EC launched a targeted consultation to improve transparency and efficiency in the secondary markets for nonperforming loans (NPLs).

    June 16, 2021 WebPage Regulatory News
    News

    BIS and Nordic Central Banks Launch Innovation Hub in Stockholm

    BIS, Danmarks Nationalbank, Central Bank of Iceland, Norges Bank, and Sveriges Riksbank launched an Innovation Hub in Stockholm, making this the fifth BIS Innovation Hub Center to be opened in the past two years.

    June 16, 2021 WebPage Regulatory News
    News

    FDIC Tech Sprint Aims to Explore Technologies to Reach Unbanked

    FDITECH, the technology lab of FDIC, announced a tech sprint that is designed to explore new technologies and techniques that would help expand the capabilities of community banks to meet the needs of unbanked individuals and households.

    June 16, 2021 WebPage Regulatory News
    News

    EC Releases Sustainable Finance Taxonomy Compass

    EC released the EU Taxonomy Compass, which visually represents the contents of the EU Taxonomy starting with the EU Taxonomy Climate Delegated Act.

    June 16, 2021 WebPage Regulatory News
    News

    FDIC Proposes Amendments to Real Estate Lending Standards

    FDIC is seeking comments on a rule to amend the interagency guidelines for real estate lending policies—also known as the Real Estate Lending Standards.

    June 15, 2021 WebPage Regulatory News
    News

    EIOPA to Consider Liquidity Risk in Stress Test for 2021

    EIOPA published its annual report, which sets out the work done in 2020 and indicates the planned work areas for the coming months.

    June 15, 2021 WebPage Regulatory News
    News

    ESRB Paper Discusses Measurement of Impact of Bank Failure via Lending

    The ESRB paper that presents an analytical framework that assesses and quantifies the potential impact of a bank failure on the real economy through the lending function.

    June 15, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7116