The European securitisation framework
Tackling challenges together
The new securitisation framework and the associated amendments and requirements pose major challenges to banks and other companies in the financial sector. We offer tailor-made solutions to meet regulatory requirements.
CRR amendments, the new STS criteria, increased transparency and due diligence requirements affecting institutional investors, as well as originator and sponsor banks, are leading to greater complexity in terms of data provision and analysis, processes and structuring. A number of new prudential stipulations have to be taken into account by the European Supervisory Authorities (ESAs) in addition to the Securitisation Regulation and the CRR amendments (level 2 and level 3 regulations: RTSs, ITSs and guidelines).
If STS certification is the aim, these requirements include verification and internal documentation by the originator or sponsor bank that the STS criteria have been complied with, even if a third party helps the originator or sponsor to certify STS compliance. Furthermore, the ESMA’s more stringent reporting requirements require more extensive disclosure of data and information by the originator and more comprehensive analyses of these by an institutional investor (for example, also insurance companies). In the new securitisation framework, the requirements regarding the risk retention and significant risk transfer must also be reconciled with the factors critical to success and the objectives system of the securitising bank.
Deloitte has in-depth experience in advising clients on the regulatory requirements arising from the securitisation regulation and CRR amendments. We can offer solutions geared to your needs – whether as an investor in securitisation positions or as an originator, sponsor or original lender. Why not contact us so that we can discuss the challenges you’re facing?