The first Section of the targeted consultation asked stakeholders to which extend they consider the framework to be successful in boosting the securitisation market in the EU and for deepening the CMU.
The second Section looked into the effect of securitisation and the availability of finance for Small and Medium Enterprises (SMEs).
The third Section focused on the legal clarity and appropriateness of the jurisdictional scope of the framework. It questioned the adequacy of the definitions of a ´securitisation´ and asked if alternative investment firm managers located in the EU should be seen as a ´sponsor´.
The fourth Section centered on the due diligence requirements. A comprehensive process for due diligence is perceived as crucial for investors, to inform them about financial products they prefer to acquire and the risks associated to it. Stakeholders questioned the proportionality of the due diligence requirements of the 2019 framework. In the consultation, the EC asked stakeholders to indicate whether due diligence requirements should be ´more principle-based, proportionate and less complex´ or more granular and prescriptive. Additionally, the EC asked whether the due diligence requirements should be linked to particular characteristics of the securitisations. Moreover, the EC put forward the question whether the obligation for investors to verify if the originator, sponsor or lender in a securitisation transaction meet the requirements for risk retention, credit granting, disclosure and STS, could be removed in the situation where the investor is from the EU and invests in a securitisation transaction where the originator, sponsor or original lender is as well based in the EU. The reason for this possible withdrawal of obligation is that supervisors already check whether these due diligence requirements are met.
The fifth Section centered on the transparency regime, which tries to secure that investors have access to the appropriate information to assess the due diligence, and national competent authorities (NCAs) have the right information at their disposal to adequately supervise the entities participating in the securitisation market. The consultation analyzes the definition of ´public´ versus ´private´ securitisations, as the former currently only captures a subset of what the market would consider as public securitisations from an economic perspective, and the latter should only focus on truly bespoke transactions. Additionally, the EC invited stakeholders to share their view regarding the granularity of (prescribed) disclosure templates for public and private securitisation. The EC mainly proposed in this context two options: (i) updating the template for public securitization, for efficiency purposes, and establishing a simplified template for private securitization as well as requiring private securitisations to report to securitisation repositories (this reporting will not be made public) and (ii) eliminating the definition of ´public´ versus ´private´ securitisations, establishing a principle-based disclosure for investors without a prescribed template and setting in place a simplified prescriptive template with a reduced number of fields for NCAs that will replace the current template.
The sixth Section laid the accent on the supervision of securitisation. A suggestion of the EC to advance the supervision structure of securitization is the establishment of a supervisory hub, bearing resemblances with the model of the SSM securitisation hub. In case a securitisation involves multiple jurisdictions, the EC proposes, as an alternative option, appointing one NCA as a lead coordinator under the joint oversight of the European Supervisory Authorities.
The seventh Section assessed the effectiveness and scope of the STS label.
The eighth Section explored the need, functioning and goals of a possible EU-wide securitisation platform as a way to make securitisation more appealing, and to stimulate the EU securitisation market.
The nineth Section focuses on the provisions for banks regarding the prudential and liquidity dimension of the securitisation process.
In the tenth and eleventh Sections, the EC aimed to gain a better understanding of the approach taken by insurers, and for IORPS and non-IORPS, towards investments in securitisations.
The final Section of the consultation offered stakeholders the opportunity to share (strategic) views regarding the challenges and potential of the EU securitisation market, the regulatory measures and the contribution to the CMU objectives.
