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 the Capital Requirements Regulation (CRR) was published on 17 June 2025. Two separate consultations on Level 2 legislation (LCR and Solvency II) followed over the summer of 2025. Since then, the Council and the Parliament have adopted their respective negotiating positions, with trilogue negotiations underway since June 2026.
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. Consultation papers PRA CP2/26 and FCA CP26/6, published in February 2026, marked the start of the second phase of reforms, with policy statements expected in Q4 2026. AFME supports the move towards a more principles based and proportionate approach, including the proposed simplification of the rules on due diligence, transparency and reporting. AFME also supports the changes to securitisation capital requirements proposed by the PRA in its consultation paper CP13/24, the majority of which will take effect from 1 January 2027.
AFME’s work aims to support the smooth implementation of the new UK securitisation regime, while continuing to engage with UK authorities on the further refinement of both conduct and prudential rules.