ESMA published the final report on the guidelines on securitization repository data completeness and consistency thresholds. The guidelines provide clarity to market participants and securitization repositories on the accepted levels of No-Data options contained in the securitization data submitted to securitization repositories. ESMA also provided an overview of the feedback received from stakeholders during the consultation on the guidelines as well as the ESMA response to that feedback. In addition, ESMA has released a list of designated competent authorities under the Securitization Regulation.
The majority of feedback received during the public consultation was supportive of the data completeness and consistency thresholds. Following feedback received during the consultation, ESMA has further developed and clarified some requirements in the guidelines. Based on the feedback received, ESMA has increased, from 20, to 35, the tolerance thresholds for both the legacy assets field threshold (that is, Threshold 1 in Annex A of the Guidelines) and the legacy IT systems field threshold (that is, Threshold 2 in Annex A of the Guidelines), for the Corporate underlying exposure template, with a view to tightening these thresholds over time once market participants have gained experience with the ESMA reporting requirements.
The objectives of these guidelines are to establish consistent, efficient, and effective supervisory practices within the European System of Financial Supervision and to ensure the common, uniform, and consistent application of the Securitization Regulation. The finalized guidelines achieve these objectives by describing thresholds for when the use of No-Data Options prevent the data submission from being "sufficiently representative of the underlying exposures in the securitization" within the meaning of Article 4(2)(d) of the Securitization Repository Operational Standards Delegated Regulation. ESMA will consider these guidelines for supervisory purpose as of January 01, 2021.
Keywords: Europe, EU, Banking, Securities, Securitization, Securitization Regulation, Securitization Repositories, No Data Options, Reporting, Designated Competent Authorities, ESMA
Previous ArticlePRA to Partly Apply EBA Guidelines on Disclosures for COVID Measures
HKMA has published a circular that sets out the regulatory and reporting treatment for loans that participating authorized institutions may grant to eligible borrowers under the 100% Personal Loan Guarantee Scheme.
ECB published the results of the assessment of internal models that banks use to calculate risk-weighted assets for credit, market, and counterparty credit risks.
PRA published a statement on the regulatory treatment of retail residential mortgage loans under the Mortgage Guarantee Scheme, or MGS.
FCA is consulting, via CP21/7, on the second phase of proposed rules to introduce the UK Investment Firm Prudential Regime (IFPR).
HM Treasury and BoE announced the joint creation of a Central Bank Digital Currency (CBDC) Taskforce to coordinate the exploration of a potential central bank digital currency in UK.
EIOPA published an opinion to set out its expectations on the supervision of the integration of climate change risk scenarios by insurers in their Own Risk and Solvency Assessment (ORSA).
EC published the Implementing Regulation 2021/622 that lays down implementing technical standards for reporting of the minimum requirement for own funds and eligible liabilities (MREL).
BCBS has set out the strategic work priorities, as part of its the work program for 2021-22.
Bundesbank published two circulars on AnaCredit reporting requirements. Circular 27/2021 covers changes to the reporting of branches, additional attributes to be reported for investment funds from August 01, 2021, and updates to the list of international organizations.
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.