Two months after an initial debate in the European Parliament’s Committee on Economic and Monetary Affairs (ECON) (see EUROPE 13729/20), the draft reports by Ralf Seekatz (EPP, German) on the proposed revision of the regulatory framework for the European securitisation market were made public on Thursday 11 December (see EUROPE 13661/26). Mr Seekatz supports the European Commission’s objective of boosting European securitisation, but intends to tighten the framework to avoid over-regulation.
In particular, the MEP limits the extension of transparency obligations by reverting to a strict definition of public securitisations, based on the existence of a ‘prospectus’, i.e. a standardised legal document designed to inform investors at the time of an offer to the public.
He also advocates an approach based on proportionality, proposing targeted reductions in due diligence requirements – the checks and analyses that investors must carry out before and during an investment – as well as in reporting obligations and the sanctions regime.
These adjustments specifically relate to repeat transactions, private securitisations and buy-side investors, i.e. players who invest in securitisation products so as not to discourage their participation in the market.
Lastly, his amendments reflect strong support for securitisations backed by public guarantees and a desire to simplify operations by removing obligations deemed costly or impractical for market participants and supervisory authorities alike.
See the draft report on a renewed framework: https://aeur.eu/f/k0r
And the report on prudential requirements: https://aeur.eu/f/k0s (Original version in French by Bernard Denuit)