Recommendations for Revising the EU Securitisation Regulation

This technical report evaluates the current state of the European Union's securitisation market, which has not fully realized its potential since the Securitisation Regulation (SECR) was introduced in 2019. The report, published by the Joint Committee of the European Supervisory Authorities, identifies key areas for improvement, including the need for clearer definitions and scope, more proportional due diligence requirements, and refinements to the Simple, Transparent, and Standardised (STS) framework. It outlines recommendations for enhancing the regulatory framework, such as clarifying jurisdictional scope, refocusing due diligence on risk assessment, and streamlining transparency requirements to reduce burdens on market participants. The report also discusses the need for supervisory consistency across the EU, suggesting options for enhancing coordination among the 48 competent authorities involved. The recommendations aim to create a more conducive environment for securitisation while ensuring investor protection and financial stability.