ESMA published an opinion containing the revised set of draft regulatory and implementing technical standards on disclosures (disclosure RTS/ITS) under the Securitization Regulation. This opinion is ESMA’s response to a letter from the EC requesting certain amendments to the disclosure technical standards published in the final report of ESMA on August 22, 2018. ESMA also published a set of questions and answers (Q&A) based on stakeholder feedback and questions on the disclosure technical standards received by ESMA since August 22, 2018.
In its opinion, ESMA agrees with the EC request to amend its disclosure RTS/ITS and, accordingly, has substantially expanded the ability for reporting entities to use the "No Data" options in the respective disclosure templates, in particular in the templates for asset-back commercial paper securitization. In addition, ESMA has also adjusted the content of certain fields in the templates, where it considered that this could more appropriately address the EC request. ESMA has also clarified the templates to be used to provide any inside information as well as information on significant events affecting the securitization (under (f) and (g) of Article 7(1) of the Securitization Regulation). ESMA submitted its opinion containing these revised draft technical standards to the EC for endorsement. These revised RTS/ITS will contribute to delivering a regulatory rule-book for EU securitization markets. The XML schema for these templates shall be made available in the coming months.
The recently published Q&A cover many technical issues on how to complete template fields and aim to provide guidance to market participants seeking further context that may be helpful for their future expectations of how to comply with these RTS/ITS. Nevertheless, they are being provided in advance of the possible adoption of the disclosure RTS/ITS being adopted by EC and are, therefore, subject to possible changes.
Keywords: Europe, EU, Banking, Securities, Securitization Regulation, Disclosures, Implementing Technical Standards, Regulatory Technical Standards, Opinion, Q&A, Templates, ESMA
Previous ArticleFCA Invites Fintech Firms for Cross-Border Testing Pilot by GFIN
PRA published the policy statement PS8/21, which contains the final supervisory statement SS3/21 on the PRA approach to supervision of the new and growing non-systemic banks in UK.
EBA published a report that sets out the final draft regulatory technical standards specifying the conditions according to which consolidation shall be carried out in line with Article 18 of the Capital Requirements Regulation (CRR).
EBA updated the list of other systemically important institutions (O-SIIs) in EU.
BCBS published two reports that discuss transmission channels of climate-related risks to the banking system and the measurement methodologies of climate-related financial risks.
UK Authorities (FCA and PRA) welcomed the findings of FSB peer review on the implementation of financial sector remuneration reforms in the UK.
PRA and FCA jointly issued a letter that highlights risks associated with the increasing volumes of deposits that are placed with banks and building societies via deposit aggregators and how to mitigate these risks.
MFSA announced that amendments to the Banking Act, Subsidiary Legislation, and Banking Rules will be issued in the coming months, to transpose the Capital Requirements Directive (CRD5) into the national regulatory framework.
EC finalized the Delegated Regulation 2021/598 that supplements the Capital Requirements Regulation (CRR or 575/2013) and lays out the regulatory technical standards for assigning risk-weights to specialized lending exposures.
OSFI launched a consultation to explore ways to enhance the OSFI assurance over capital, leverage, and liquidity returns for banks and insurers, given the increasing complexity arising from the evolving regulatory reporting framework due to IFRS 17 (Insurance Contracts) standard and Basel III reforms.
ECB published results of the benchmarking analysis of the recovery plan cycle for 2019.