Cadwalader Attorneys Analyze EU Securitization Regulation

On November 30, 2018, the European Banking Authority, the European Securities and Markets Authority ("ESMA") and the European Insurance and Occupational Pensions Authority (collectively, the "European Supervisory Authorities" or "ESA") published a joint statement (the "Joint Statement") related to (i) the reporting templates used for the quarterly underlying exposure and investor reports under Article 7 of the Securitization Regulation and (ii) the amendment to Article 14 of the Capital Requirements Regulation and its impact on the consolidated application of obligations in the Securitization Regulation. As described more fully in a Cadwalader Memorandum, this Joint Statement illuminates two of the most critical issues regarding the new Securitization Regime and indicates the approach that competent authorities are likely to take when supervising compliance with respect to aspects of the Securitization Regulation in its initial application stage.