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ARTICLE · 22 JULY 2024

Commission Delegated Regulation On Sustainability Disclosures For STS Securitisations Enters Into Force

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The Commission Delegated Regulation, supplementing Regulation (EU) 2017/2402 (the "Securitisation Regulation"), entered into force on 8 July 2024 (the "Commission Delegated Regulation").

LuxembourgFinance and Banking
Aurélien Hollard
Aurélien Hollard
Julie Pelcé
Julie Pelcé
Stamatina Stylianopoulou
Stamatina Stylianopoulou
José Ocaña
José Ocaña
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Introduction

The Commission Delegated Regulation, supplementing Regulation (EU) 2017/2402 (the "Securitisation Regulation"1), entered into force on 8 July 2024 (the "Commission Delegated Regulation" 2). It provides for regulatory technical standards ("RTS") on the content, methodologies and presentation of information related to the principal adverse impacts of the assets financed by the underlying exposures on sustainability factors for (a) simple, transparent and standardised ("STS") non-ABCP traditional securitisation, and for (b) STS on-balance-sheet securitisation.

Key elements of the Commission Delegated Regulation

The Commission Delegated Regulation applies to originators of (i) non-ABCP traditional STS securitisations and (ii) on-balance-sheet STS securitisations where the underlying exposures are residential loans, auto loans, or leases.

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