Securitisation Regulation—essentials

The following Banking & Finance practice note provides comprehensive and up to date legal information covering:

  • Securitisation Regulation—essentials
  • EU Securitisation Regulation and related legislation—background and purpose
  • Brexit—onshoring of the EU Securitisation Regulation
  • Securitisation Regulation—Level 2 measures
  • EU Securitisation Regulation—Level 3 measures
  • Articles 4 and 11 of EMIR as amended by Article 42 of the Securitisation Regulation—Level 2 measures
  • EU Securitisation Regulation—other EU regulatory materials
  • Securitisation Framework—UK regulatory materials
  • Industry initiatives and documents
  • Securitisation Regulation—General definitions
  • More...

Securitisation Regulation—essentials

This Practice Note provides information on the Securitisation Regulation (EU) 2017/2402 (OJ L 347, 28.12.2017, p. 35) (EU Securitisation Regulation) and Retained Regulation (EU) 2017/2402 (UK Securitisation Regulation). In each section of this Practice Note, links are given to the relevant provisions of the EU Securitisation Regulation and/or the UK Securitisation Regulation, as applicable, and significant divergence between the EU Securitisation Regulation and the UK Securitisation Regulation is indicated.

EU Securitisation Regulation and related legislation—background and purpose

In September 2015, the European Commission published the Action Plan on Building a Capital Markets Union. The Action Plan proposed a broad range of measures which would create unified the capital markets across the EU’s Member States—a Capital Markets Union or CMU. This would promote investment and boost growth.

The CMU Action Plan included this on securitisation:

‘Following the crisis, EU securitisation markets remain significantly impaired, damaged by concerns surrounding the securitisation process and the risks involved. While these weaknesses manifested themselves primarily via securitisations based on US sub-prime loans, the regulatory reform response that followed applied to all securitisations. There is no intention to undo EU reforms addressing the risks inherent in highly complex and opaque securitisations. However, it is important that securitisation is revived to ensure that it can act as an effective funding channel to the wider economy and mechanism to diversify risks. New legislative proposals…will better

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