Response to Commission consultation on framework for simple, transparent and standardised securitisation

Consultation response
Finance Watch
Regulation(s) covered in this publication
  • Securitisation
  • STS Securitisation
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Finance Watch response to the European Commission consultation on an EU framework for simple, transparent and standardised securitisation.

Key points:

  • It is essential that the future definition of qualifying securitisation integrate lessons from the crisis; among other things securitisation should exclude tranching from the framework in order to be truly simple.
  • We regret that the qualifying framework relies on external ratings, in contradiction of the Commission’s objective to reduce the reliance on external credit assessment.
  • We welcome the exclusion of synthetic securitisations from the framework.
  • We believe that risk retention requirements should be increased for both qualifying and non-qualifying securitisation to a vertical slice of 15%.
  • We hope that the Commission will take into account the opinion of non-industry stakeholders in its future framework.
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