In an eagerly awaited move, the European Commission published a Commission Delegated Regulation setting out disclosure related requirements under the EU Securitisation Regulation (EU) 2017/2402 on 16 October 2019.
The Delegated Regulation is based on the draft regulatory technical standards (RTS) submitted to the Commission by the European Securities and Markets Authority (ESMA) in January 2019 specifying the information and the details of a securitisation which are required to be made available by the originator, sponsor and securitisation special purpose entity (SSPE) to various parties under the Securitisation Regulation.
This is an important milestone for the new regime so the Delegated Regulation is more essential reading for anyone involved in the industry.
What happens now?
Once the European Parliament and the Council endorse the RTS, it will be published in the Official Journal of the European Union. Assuming that there are no objections during the scrutiny period, the new disclosure requirements -- including ESMA’s new reporting templates -- will come into force twenty days after such publication. This is expected to occur in Q1 2020.
We are continuing to assist clients with reviewing and understanding the impact of the Securitisation Regulation and the RTS, including the new reporting templates, on their operations and deal documents in order to prepare for life under the new regime.
A lot done, more to do!
Further reading:
https://ec.europa.eu/transparency/regdoc/rep/3/2019/EN/C-2019-7334-F1-EN-MAIN-PART-1.PDF
https://ec.europa.eu/transparency/regdoc/rep/3/2019/EN/C-2019-7334-F1-EN-ANNEX-1-PART-1.PDF
The scope of the information to be disclosed is driven by the need for investors and potential investors in a securitisation to conduct due diligence and monitor a number of risks
https://ec.europa.eu/transparency/regdoc/rep/3/2019/EN/C-2019-7334-F1-EN-MAIN-PART-1.PDF
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