Review of the Securitisation Framework in the EU
In light of the political momentum to revive securitisation in the EU, the European Commission launched a targeted consultation on the functioning of the securitisation framework in October 2024.
The Commission’s legislative proposal to amend the Securitisation Regulation (SECR) and Capital Requirements Regulation (CRR) was published on 17 June 2025, along with consultations on Level 2 legislation (LCR and Solvency II) to follow over the summer.
AFME’s work aims at ensuring the implementation of a package of measures that address both the supply- and demand-side of the EU securitisation market. We advocate for greater risk-sensitivity and proportionality in all aspects of the securitisation framework as a means to strengthen the lending capacity of European banks, support the Savings and Investments Union (SIU) and increase the EU’s economic competitiveness.
Review of the Securitisation Framework in the UK
The UK’s securitisation framework has been changing in a phased approach. The first set of rules came into force on 1 November 2024 and the second phase of reforms is expected to commence in Q4 2025, with a new FCA/PRA consultation on the definition of public and private securitisation and the associated reporting regime, which might also include refinements on other policy areas covered by the first batch of rules.
AFME supports the more principles-based and proportionate UK due diligence regime as well as the changes to the securitisation capital requirements proposed by the PRA in their consultation which closed in January 2025.
AFME’s current priority in the UK is to introduce a more principles-based and simplified approach to reporting overall.
