Several implementing and delegated regulations of EC have been published in the Official Journal of the European Union, as part of the securitization framework in EU. The key published regulations include regulatory and implementing technical standards on applications for entities to register as securitization repositories and for various disclosures, reporting, and notifications required under the securitization framework. ESMA, the securities markets regulator in EU, has confirmed that different elements of the new regime under the Securitization Regulation will come into force on September 23, 2020.
The following Commission Implementing Regulations and Commission Delegated Regulations have been published:
- The Commission Delegated Regulation 2020/1224 supplementing EU Regulation 2017/2402 with regard to regulatory technical standards specifying the information and the details of a securitization to be made available by the originator, sponsor, and securitization special purpose entity (SSPE)
- The Commission Implementing Regulation 2020/1225 laying down implementing technical standards with regard to the format and standardized templates for making available the information and details of a securitization by the originator, sponsor, and SSPE
- The Commission Delegated Regulation 2020/1226 supplementing EU Regulation 2017/2402 and laying down regulatory technical standards specifying the information to be provided in accordance with the Simple, Transparent and Standardized (STS) notification requirements
- The Commission Implementing Regulation 2020/1227 laying down implementing technical standards with regard to templates for the provision of information in accordance with the STS notification requirements
- The Commission Implementing Regulation 2020/1228 laying down implementing technical standards with regard to the format of applications for registration as a securitization repository or for extension of a registration of a trade repository pursuant to EU Regulation 2017/2402
- The Commission Delegated Regulation 2020/1229 supplementing EU Regulation 2017/2402 with regard to regulatory technical standards on securitization repository operational standards for data collection, aggregation, comparison, access, and verification of completeness and consistency
- The Commission Delegated Regulation 2020/1230 supplementing EU Regulation 2017/2402 with regard to regulatory technical standards specifying the details of the application for registration of a securitization repository and the details of the simplified application for an extension of registration of a trade repository
Securitization repositories centrally collect and maintain the records of securitizations and will be registered and supervised by ESMA. An entity that wishes to be registered as a repository by ESMA can submit its application from September 23, 2020. Until ESMA has registered at least one securitization repository, information that should be made available by reporting entities to securitization repositories on public securitizations must be made available via a website that meets certain requirements. ESMA has developed a set of securitization disclosure templates to improve and standardize the information made available to investors, potential investors, and competent authorities. These disclosure templates will also enter into force on September 23, 2020 and must as of that date be used to make any new information available about a securitization, in accordance with Article 7 of the Securitization Regulation. In August 2020, ESMA had updated the XML schema version 1.2.0, along with the associated reporting instructions, for templates set out in the technical standards on disclosure requirements under the Securitization Regulation. Additional guidance on how to fill in the disclosure templates can be found in the ESMA questions and answers (Q&A) on securitization topics.
Effective Date: September 23, 2020
Keywords: Europe, EU, Banking, Securities, Securitization Framework, STS Securitization, Disclosures, Reporting, Securitization Repositories, EC, ESMA
Previous ArticlePRA Finalizes Reporting and Rulebook Changes for CRR and Solvency II
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.