ECB Publishes Guide on Notification of Securitization Transactions
The European Central Bank (ECB) published a non-binding guide, along with an associated template, to set out the notification practices that significant institutions acting as originators or sponsors of a securitization transaction are advised to follow.
ECB recommends that significant institutions follow this guide with respect to all securitization transactions originated after April 01, 2022, though ECB may request information, on a case-by-case basis, for securitization transactions that originated before this date. The guide specifies information that significant institutions are expected to submit to ECB, both at origination and during the life of securitization transactions, if a significant event (as defined in Article 7 (1) g) of the Securitization Regulation) occurs relating to the transactions, affecting compliance with Articles 6 to 8. ECB foresees a phase-in implementation until October 01, 2022 for the significant institutions unable to properly notify ECB from April 01, 2022. During the phase-in period, significant institutions are expected to finalize set-ups and systems to be able to submit notifications in line with the expectations of the guide. It is recommended that new transactions be notified to ECB no later than one month from the date of origination. ECB consulted on the draft guide on the notification of securitization transactions from November 2021 to January 2022. ECB also published the comments received on the draft guide.
The Securitization Regulation establishes a comprehensive legislative framework applicable to all securitizations, including requirements with regard to risk retention (Article 6), transparency (Article 7), and a ban on resecuritization (Article 8). The requirements of Articles 6 to 8 cover all securitizations within the scope of the Securitization Regulation, including public and private transactions; traditional, synthetic, and asset-backed commercial paper, or ABCP, transactions; and securitizations that are structured to achieve significant risk transfer and those that are not. The guide recommends that significant institutions acting as originators or sponsors for either private or public securitizations notify ECB of compliance of these transactions with Articles 6 to 8 of the Securitization Regulation. Notifications are expected to be submitted via a dedicated template, published alongside the guide. The guide will be updated from time to time to reflect developments in the regulation and supervision of securitizations.
Related Links
Keywords: Europe, EU, Banking, Securitization Regulation, Securitization Framework, Securitization Transactions, Guidelines, ECB
Previous Article
BCBS Consults on Prudential Treatment of Cryptoasset ExposuresNext Article
CMF Designates Six Banks as Systemically ImportantRelated Articles
EBA Publishes Final Regulatory Standards on STS Securitizations
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.
ECB Further Reviews Costs and Benefits Associated with IReF
The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.
EBA Publishes Funding Plans Report, Receives EMAS Certification
The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).
MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures
The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.
BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules
The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.
IOSCO Welcomes Work on Sustainability-Related Corporate Reporting
The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)
BoE Allows One-Day Delay in Statistical Data Submissions by Banks
The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.
ACPR Amends Reporting Module Timelines Under EBA Framework 3.2
The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.
ECB Paper Discusses Disclosure of Climate Risks by Credit Agencies
The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)
APRA to Modernize Prudential Architecture, Reduces Liquidity Facility
The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.
