Following eight meetings of EU Council experts, held since the European Commission presented a renewed regulatory framework for the European securitisation market (see EUROPE 13661/26), the Member States’ ambassadors to the EU (Coreper) are called upon to pave the way for future inter-institutional negotiations (trilogue) with European Parliament by confirming the compromise announced by Copenhagen on Friday 12 December (see EUROPE 13772/2).
Earlier this month, the Danish Presidency of the EU Council presented compromise texts covering both the Capital Requirements Regulation (‘CRR’) and the Securitisation Regulation (‘SecReg’) (see EUROPE 13741/9).
These texts broaden the scope of the Commission’s proposal by rebalancing the treatment of ‘synthetic’ securitisations, which enable banks to transfer credit risk without transferring the loans, and ‘cash’ securitisations, based on the actual sale of receivables to investors, with the aim of facilitating financing of the real economy, particularly small and medium-sized enterprises.
Furthermore, according to the Presidency, these compromises strengthen the safeguards designed to make the financial system more secure, while simplifying certain obligations for the players involved and making these operations more attractive to investors.
Following a silence procedure launched by Copenhagen on these compromises - a mechanism by which a text is deemed approved in the absence of formal objections within a given timeframe - no objections were raised last Thursday. The Presidency was therefore able to announce on Friday that the texts had received the necessary support to form the EU Council’s negotiating position.
See the EU Council’s negotiating mandate for CRR: https://aeur.eu/f/jzo ; and for SecReg: https://aeur.eu/f/jzq (Original version in French by Bernard Denuit)