Following the outcome of the securitisation trilogues today, Simon Lewis, Chief Executive at the Association for Financial Markets in Europe (AFME) said:
“The political agreement on the proposals for a Simple Transparent and Standardised (STS) Securitisation framework represents a crucial milestone in the development of a Capital Markets Union. While important details remain to be finalised, we are confident that the long-term impact of the STS framework will be positive.
“Attention must now turn to implementation. It is critically important that both the STS Framework and the supporting Level II regulations are implemented in a co-ordinated, simultaneous and holistic way. To adopt a piecemeal approach would risk a damaging down-draught on issuance as higher capital requirements for bank investors take effect before lower capital requirements for insurers are introduced.
“AFME therefore calls on the European institutions to choose an implementation date for the STS framework which will allow enough time for this important secondary legislative work to be completed. We urge colegislators to support this approach to help ensure the successful launch of the new STS framework as well as the revival of the wider European securitisation market.”