Financial Services & Fintech

Proposal for an EU Framework for Simple, Transparent and Standardised Securitisation

12 Oct 2015

< 1 min read

With the ultimate goal of reviving the securitisation market and thus improving the financing of the EU economy, the EU Commission published a draft Regulation on Securitisation on the 30th September, 2015. The proposal sets out a general framework for securitisation and amendments to the Capital Requirements Regulation (CRR) and aims to:

  • restart markets on a more sustainable basis, so transparent and standardised securitisation can be an effective funding;
  • allow for efficient and effective risk transfers to a broad set of institutional investors as well as banks;
  • allow securitisation to function as an effective funding mechanism for longer term investors as well as banks; and
  • protect investors and manage systemic risk by avoiding a recurrence of the flawed “originate to distribute” models.

For further information about how GVZH Advocates can help you with your financial services requirements kindly contact us here.