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European Financial Services Round Table

Wednesday, February 17, 2016
Press Release: EFR Position Paper on Securitisation
Today the European Financial Services Round Table (EFR) has issued its position paper on Securitisation, in view of the discussion in the European Parliament.

The EFR supports the aim to revive the European securitisation market and welcomes the proposal to develop a new framework for securitisation, including Simple Transparent and Standardised (STS) securitisation as well as the Council Agreement on this proposal.

The EFR is concerned by the timeframe for getting approved the securitisation proposal – done by the European Commission on 30 September 2015 –and calls upon the European Parliament to reach a position as soon as possible.

    Concerning the proposal, the EFR notes that the European securitisation market can only be revived if there is strong demand from institutional investors such as insurers and banks. This requires:
  • a robust framework for investment but also capital charges, which do not discour-age investment in securitisation and are proportionate and consistent with the risk in a simpler, more transparent securitised world;
  • STS criteria, which are clear and could not be interpreted differently across supervisors;
  • flexible criteria, so that changing market conditions and consumer preferences can be accommodated;
  • independent third party certification, subject to efficient and effective regulatory oversight.

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