Action 6 is part of objective 1 (support a green, digital, inclusive and resilient economic recovery by making financing more accessible to European companies) of the 2020 capital markets union (CMU) action plan. It aims at strengthening the role of securitisation as a real economy funding instrument for banks. Against this background, the Commission is reviewing the EU regulatory framework for securitisation to identify ways to improve the relative balance between the various objectives of the framework, including investor protection, financial stability and access to finance.
Securitisation: progress so far and way forward
As part of its review, the Commission published in October 2022 a comprehensive report on the functioning of the Securitisation Regulation. The report draws on the findings from a consultation of stakeholders and on the input provided by the European Supervisory Authorities (ESAs). It concludes that the EU securitisation framework works well, even though dynamic market growth has not yet materialised. At the same time, the report proposes several targeted improvements to the way the framework works, which the Commission will pursue without making changes to the Securitisation Regulation itself. For example, the report provides guidance on certain areas of the Securitisation Regulation such as its jurisdictional scope. The report also invites the ESAs to revise the regulatory technical standards and the implementing technical standards specifying transparency obligations, work on which has already commenced.
In addition, the Commission is reviewing the prudential treatment of securitisation for banks and insurance companies. The Commission requested advice from the ESAs’ Joint Committee in October 2021. The ESAs’ Joint Committee provided its advice in December 2022. The Commission is currently analysing it before considering next steps.
Finally, taking into account the European Banking Authority’s report on significant risk transfer in securitisation transactions published in November 2020, the Commission is considering the harmonisation of certain significant risk transfer assessment practices and processes through a Delegated Act.