Securitisation Regulation Amendments – A Targeted Approach

Background

It is becoming increasingly critical to revitalise the European securitisation market in order to enhance the resilience and competitiveness of the EU's financial system. In light of this, a series of targeted improvements to the securitisation framework have been proposed, with the aim of balancing the need to foster issuance, investment and growth, with maintaining financial stability. In particular, changes in the key areas of due diligence, transparency, STS and supervision have been set out in the draft legislative proposal to amend Regulation (EU) 2017/2402 (the "Amending Regulation"). The Amending Regulation forms part of the first legislative initiative proposed under the EU's Savings and Investments Union (SIU) strategy.