Sector developments and company hires

The European Commission has published the Delegated Regulation on Regulatory Technical Standards (RTS) regarding the disclosure requirements in the Securitisation Regulation, detailing what information has to be disclosed by the sellers of European securitisations. Rabobank’s structured finance analysts comment that, although this new regulation does not contain much new information, the arrival of the act marks an important step in the legal process of implementing the new securitisation regulations.

Following industry consultations, a final paper and an important revision on some of the requirements through an opinion/amendment which ESMA published at the beginning of this year, the rules have now officially come together in this Delegated Regulation.

PCS comments that while the data disclosure requirements will apply to all European securitisations, the issue of what qualifies as a European securitisation remains unsettled. The third-party verifier adds that a question still remains as to whether “the data requirements apply only to securitisations issued by European entities or do they apply to all securitisations sold in Europe, so snaring non-European issuers?”

The draft RTS is now presented to the European Council and the European Parliament for three months and, during that period, either may object to and veto the RTS.  Once the three month period has expired without objection, the RTS is published in the Official Journal and twenty days after publication it is law. PCS comments that in all likelihood unless there is a market revolt, the new data requirements will come into force late January or early February 2020.