Joint note on the EU Commission’s proposals on simple,
transparent and standardised securitisation

Publication date: 31 March 2016

This document seeks to identify key elements of the Commission’s proposed regulation on simple, transparent and standardised (‘STS’) securitisation (the ‘Text’) over which the signatories have agreed that changes would be beneficial and necessary to create a safe European securitisation market able to support the economy.

This note seeks to address those major points on which there appears to be a broad consensus as to issues and solutions. It is not a compendium of every possible improvement to the proposals.

Individual signatories may well have additional issues which they believe would benefit from some modifications. If they do not appear here it may be because they are not agreed as a matter of consensus. But it may also be because we have tried to keep this report focused on key overarching issues. Therefore, the absence of any specific point in this document does not mean that it is not valid or of significant importance.

Especially, there are many “sectoral” issues that will need attention. These do not appear in this document as this document seeks to deal with those issues of overarching importance on which the signatories agree. Nevertheless, there are parts of the Text as drafted that would prevent certain types of funding qualifying as STS securitisation notwithstanding that they have performed impeccably during and since the crisis and are of great importance to the European economy. These important sectoral issues will have been and will continue to be raised by stakeholders.