Featured Product

    ECB Publishes Guide on Notification of Securitization Transactions

    March 18, 2022

    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

    Related Articles
    News

    EU Agencies Update LCR Rule and Macro-Prudential Policy Recommendation

    The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).

    May 23, 2022 WebPage Regulatory News
    News

    EBA Publishes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.

    May 23, 2022 WebPage Regulatory News
    News

    EIOPA Examines Physical Climate Risk Exposure, SII Non-Compliance

    The European Insurance and Occupational Pensions Authority (EIOPA) published a report assessing insurers' exposure to physical climate change risks

    May 20, 2022 WebPage Regulatory News
    News

    NGFS Report Explores Quantification of Climate Risk Differentials

    The Network for Greening the Financial System (NGFS) published two reports to aid central banks and regulators in their oversight of the financial sector and in their central bank operations

    May 19, 2022 WebPage Regulatory News
    News

    EC Publishes Results on Review of Web Accessibility Directive

    The European Commission (EC) published the results of a public consultation, held in October 2021, on the review of the Web Accessibility Directive.

    May 19, 2022 WebPage Regulatory News
    News

    MAS Consults on Adjustment Spreads for Conversion of SOR Contracts

    The Monetary Authority of Singapore (MAS) and the SC-STS are jointly consulting, until June 10, 2022, on setting adjustment spreads for the conversion of legacy SOR contracts to SORA reference rate.

    May 18, 2022 WebPage Regulatory News
    News

    OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities

    The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.

    May 17, 2022 WebPage Regulatory News
    News

    EBA Proposes Standards to Support Secondary NPL Markets

    The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.

    May 17, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).

    May 13, 2022 WebPage Regulatory News
    News

    EBA Issues Standards for Crowdfunding Service Providers Under ECSPR

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.

    May 13, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8206