The Joint Committee (JC) of the European Supervisory Authorities (ESAs), the European Banking Authority (EBA), European Insurance and Occupational Pensions Authority (EIOPA), and European Securities and Markets Authority (ESMA), has published its evaluation report on the functioning of the European Union (EU) Securitisation Regulation (SECR).

The report proposes recommendations to strengthen the overall effectiveness of Europe’s securitisation framework through simplification while ensuring a high level of protection for investors and safeguarding financial stability.

This report also identifies areas where the regulatory and supervisory framework can be enhanced, supporting the growth of robust and sound European securitisation markets.

The key recommendations included clarifying the scope of the securitisation
regulation, broadening the definition of public securitisation, introducing proportionality in due diligence requirements, simplifying transparency and reporting requirements, targeted changes to the simple, transparent and standardised (STS) framework, clarifying risk retention rules, and promoting greater supervisory consistency across Europe.

These recommendations will feed into the European Commission’s legislative review of the securitisation legislative framework, contributing to the development of well-functioning, resilient, and transparent securitisation markets across the EU.

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