Featured Product

    ESAs Issue Q&A and Opinion on Provisions of Securitization Regulation

    March 26, 2021

    ESAs jointly published a set of questions and answers (Q&A) on cross-sectoral aspects of the Securitization Regulation. The Q&A clarify the content and format of the information of a securitization transaction that should be disclosed by the originator, sponsor, and special purpose entity issuer. The Q&A also clarify the transaction documentation of a Simple, Transparent, and Standardized (STS) securitization that should be made publicly available to facilitate investor compliance with its due diligence requirements as well as the type of STS certification services that can be provided by Third Party Verifiers to the securitization parties. Another joint publication from ESAs sets out an opinion on the jurisdictional scope of the obligations of the non-EU parties (or third-country parties) to securitizations under the Securitization Regulation.

    The joint opinion on jurisdictional scope is intended to facilitate the understanding of certain provisions of the Securitization Regulation in cases where third-country entities become parties to a securitization and is intended to help improve the functioning of securitization markets in EU. The opinion clarifies the potential obligations of such third-country parties as well as related compliance aspects of a transaction under the Securitization Regulation. In this opinion, ESAs set out their common view on the practical difficulties faced by market participants in connection with the jurisdictional scope of application of various provisions in the Securitization Regulation in the following scenarios:

    • Securitizations where some, but not all, of their sell-side parties—including originator, original lender, sponsor, and special purpose entity issuer—are located in a third country
    • Securitizations where all sell-side parties are located in a third-country and EU investors invest in them
    • Investments in securitizations by subsidiaries of EU regulated groups, where those subsidiaries are located in a third country
    • Securitizations where one of the parties is a third-country investment fund manager

    The joint opinion recommends that these difficulties should be addressed, where possible, through interpretative guidance from EC. ESAs also invite EC to undertake a comprehensive review of the jurisdictional scope framework of the Securitization Regulation as part of the upcoming overall reform of this Regulation, as a means of thoroughly addressing market participants’ concerns regarding proper market functioning.

     

    Related Links

    Keywords: Europe, EU, Banking, Insurance, Q&A, Securitization Regulation, STS Securitization, Jurisdictional Scope, Third-Country Parties, Opinion, EC, ESAs

    Related Articles
    News

    EC Regulation Sets Out Standards for Reporting and Disclosure of MREL

    EC published the Implementing Regulation 2021/763 that lays down implementing technical standards for supervisory reporting and public disclosure of the minimum requirement for own funds and eligible liabilities (MREL).

    May 12, 2021 WebPage Regulatory News
    News

    APRA Decides to Standardize Submission Date for Quarterly Reporting

    APRA announced the standardization of quarterly reporting due dates for authorized deposit-taking institutions.

    May 11, 2021 WebPage Regulatory News
    News

    ECB Working Group Publishes Recommendations on EURIBOR Fallbacks

    The private sector working group of ECB on euro risk-free rates published the recommendations to address events that would trigger fallbacks in the Euro Interbank Offered Rate (EURIBOR)-related contracts, along with the €STR-based EURIBOR fallback rates (rates that could be used if a fallback is triggered).

    May 11, 2021 WebPage Regulatory News
    News

    Bundesbank Publishes Supporting Documentation for Reporting by Banks

    Bundesbank published a list of "EntryPoints" that are accepted in its reporting system; the list provides taxonomy version and name of the module against each EntryPoint.

    May 11, 2021 WebPage Regulatory News
    News

    EBA Publishes Phase 1 of Reporting Framework 3.1

    EBA published the phase 1 of its reporting framework 3.1, with the technical package covering the new reporting requirements for investment firms (under the implementing technical standards on investment firms reporting).

    May 10, 2021 WebPage Regulatory News
    News

    APRA to Finalize Capital Adequacy Standard Revisions by January 2022

    Asia Pacific Australia Banking APS 111 Capital Adequacy Regulatory Capital Basel RBNZ APRA

    May 10, 2021 WebPage Regulatory News
    News

    ESMA Issues Guidelines on Outsourcing to Cloud Service Providers

    ESMA published the final guidelines on outsourcing to cloud service providers.

    May 10, 2021 WebPage Regulatory News
    News

    EBA Publishes Data on Deposit Guarantee Schemes

    EBA published annual data for two key concepts and indicators in the Deposit Guarantee Schemes (DGS) Directive—available financial means and covered deposits.

    May 10, 2021 WebPage Regulatory News
    News

    OSFI Sets Out Plan for Future Guidance on Managing Technology Risk

    OSFI has set out the schedule for release of draft guidance on the management of technology risks by federally regulated financial institutions and private pension plans.

    May 10, 2021 WebPage Regulatory News
    News

    MAS Updates Housing Loan Rules, Proposes Corporate Governance Guidance

    MAS updated rules for new housing loans by banks and finance companies.

    May 10, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6964