ESMA consultation for the overhaul of Securitisation Regulation disclosure templates

• ESMA issued a consultation paper on 21 December 2023 to revise disclosure templates under the Securitisation Regulation
  
  
• SMA presents several options including delaying the review, maintaining the current framework with amendments, streamlining templates for public and private securitisations, and a thorough review for fundamental simplification
  
  
• Stakeholders are invited to submit comments on the consultation paper by 15 March 2024
  
  

In October 2022, the European Commission published a report on the functioning of the Securitisation Regulation, identifying a number of targeted improvements in its functionality. Among the areas marked for improvement, the Commission noted the necessity for a series of measures to improve the functioning and efficacy of the transparency requirements and invited ESMA to review the technical standards pertaining to the disclosure framework.

ESMA has launched the consultation paper to gather evidence regarding the costs and benefits with pursuing different approaches to address the review. The paper provides a useful overview of the Securitisation Regulation disclosure regime and insights into ESMA's engagement with a diverse set of stakeholders following the recommendation to review the disclosure framework.

ESMA presents several options for the way forward which, in summary, include:

• Delaying the review of the templates until further changes to the Level 1 text;
• Maintaining the current framework with the introduction of some amendments;
• Streamlining the disclosure templates for public deals and developing a dedicated template for private securitisation; and
• A thorough review of the disclosure templates, aiming at a fundamental simplification of the framework.

The deadline for comments on the consultation paper is 15 March 2024.

View the consultation paper here.