European Commission Report On The Securitisation Regulation

Background

On 10 October 2022 the European Commission finally published its eagerly anticipated report¹ (the "Report") on the Securitisation Regulation² . The most notable aspects for SPV issuers are:

• No issues or shortcomings identified in relation to securitisation special purpose entities ("SSPEs") and no recommendation to further regulate SSPEs or to create an SSPE licensing regime;
• The Report invites the European Securities and Markets Authority ("ESMA") to simplify transparency reporting templates for both underlying exposures and wholesale for "private" transactions;
• The Report specifies that EU institutional investors should only invest in securitisations, both EU securitisations and those involving third country issuers, which comply with Article 6 (Risk Retention), Article 7 (Transparency) and Article 9 (Credit Granting) of the Securitisation Regulation;