Clifford Chance
The Proposed Securitisation Regulation
30 September 2015
The pace of regulatory change in Europe since the onset of the 2007/08 financial crisis has been blistering and shows little sign of slowing. The securitisation industry has been forced to adjust to these changes at a very demanding pace.
The changes in regulation over that time have touched a broad range of areas, including derivatives, bank capital, insurance capital, liquidity coverage, regulatory due diligence and risk retention rules. Although many of these initiatives are sensible in principle, the fragmented way in which they were introduced has often presented unnecessary challenges to industry. The Securitisation Regulation proposed by the EU Commission today aims to change all that by introducing a single securitisation regulatory regime. It also introduces the idea of "simple, transparent and standardised" (STS) securitisation which would receive more favourable regulatory treatment, at least compared to other securitisation transactions. In this briefing, we discuss the main contents of the proposed regulation and the way in which it might affect our markets.
