ECON published Compromise Amendments to Securitisation Regulation

The European Parliament’s Economic and Monetary Affairs Committee has approved compromise amendments to the proposed EU securitisation regulation, and the related CRR amending regulation, which may, if included in the final version of such regulations, hinder, rather than promote, the recovery of Europe’s securitisation market.

Background

On 30 September 2015, the European Commission (the Commission) published its proposal for a new regulation consolidating EU rules relating to securitisation and creating a European framework for simple, transparent and standardised (STS) securitisation (the Securitisation Regulation). In connection with this, the Commission also published its proposal for a regulation (the CRR Amending Regulation) amending Regulation (EU) No. 575/2013 (the CRR) to give effect to the Basel III Revisions to the Securitisation Framework of December 2014 and to provide more favourable capital treatment to transactions that meet the criteria for STS securitisations. The Council of Europe (the Council) published its own compromise text in respect of the Securitisation Regulation in November 2015.