Amending Regulation (EU) 2017/2402 on securitisation and a specific framework for simple, transparent and standardised securitisation

These amendments revise Regulation (EU) 2017/2402 on securitisation and the framework for simple, transparent and standardised (STS) securitisation, referencing the Draghi report on European competitiveness. The stated aim is to boost lending to households and businesses, including SMEs, by reducing reporting burdens: private securitisations would be exempt from prescribed templates, and a redundant investor verification obligation would be deleted. Amendments address the definition of public securitisation, propose designating ESMA as competent authority for certain provisions, and question a new penalty regime with fines of up to 10% of turnover. Further changes cover homogeneity factors, disclosure of historical default and loss data covering at least five years, conditions for insurance or reinsurance undertakings providing credit protection, third-country STS equivalence, and a review of the Regulation within five years of adoption.