Response to Commission consultation on framework for simple, transparent and standardised securitisation

Date published: 13 May 2015

Finance Watch response to the European Commission consultation on an EU framework for simple, transparent and standardised securitisation.

Download the response

Key points:

- It is essential that the future definition of qualifying securitisation integrate lessons from the crisis; among other things securitisation should exclude tranching from the framework in order to be truly simple.

- We regret that the qualifying framework relies on external ratings, in contradiction of the Commission's objective to reduce the reliance on external credit assessment.

- We welcome the exclusion of synthetic securitisations from the framework.

- We believe that risk retention requirements should be increased for both qualifying and non-qualifying securitisation to a vertical slice of 15%.

- We hope that the Commission will take into account the opinion of non-industry stakeholders in its future framework.