Response to Commission consultation on 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.