EC Finalizes Several Regulations Under Securitization Framework in EU
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.
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Effective Date: September 23, 2020
Keywords: Europe, EU, Banking, Securities, Securitization Framework, STS Securitization, Disclosures, Reporting, Securitization Repositories, EC, ESMA
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