On the 25th September 2019, the European Banking Authority (“EBA”) launched a public consultation on its proposals for a simple, transparent and standardised (“STS”) framework for synthetic securitisations. This new STS framework was introduced by means of Regulation (EU) 2017/2402 ("Securitisation Regulation") and which seeks to harmonise EU laws applying to securitisations.
While the Securitisation Regulation sets out requirements for all securitisations, it also sets out additional criteria for those securitisations which are seeking to qualify as an STS securitisation. In this regard, STS securitisations will have to:
satisfy the general requirements of the Securitisation Regulation;
satisfy the additional STS criteria;
be designated and notified to the European Securities and Markets Authority as STS by the originator and the sponsor; and
appear on a list of STS securitisations maintained on ESMA's official website.
This public consultation on the STS framework and its proposed list of criteria will run until the 25th November 2019.
Please feel free to contact us should you require more information about the STS framework or other related requirements.