Following yesterday’s vote by the European Parliament’s ECON Committee on the EU Securitisation Regulation (SECR) review, EFAMA expresses concern that aspects of the current text lack sufficient ambition to truly prioritise European investors and support Savings and Investment Union (SIU) objectives. 

While the proposal successfully encourages greater supply via targeted changes to the CRR and Solvency II frameworks, EFAMA identifies two areas where the text falls short:

• Overly prescriptive due diligence requirements continue to stifle demand in Europe, including for third-country issuers. We urge the co-legislators to reduce red tape and allow our industry to source sufficient information from issuers and manage the corresponding risks.

• The current text potentially extends SECR sanctioning for due diligence breaches to asset managers. However, asset managers are already subject to a robust, ad hoc sanctioning regime under UCITS & AIFMD legislation. Adding a secondary layer of SECR sanctions is redundant and duplicative.   

Federico Cupelli, EFAMA Deputy Director for Regulatory Policy, commented: “As we move toward trilogue negotiations, we urge policymakers to find a better balance between regulating risks and encouraging market growth. Barriers to third-country investment and duplicative reporting do not help European investors. To make the SIU project a success, the securitisation framework must help, rather than hinder, investor participation in this vital asset class.”

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Notes to Editors

You can find the European Commission’s proposals here.

For further information, please contact:

Hayley McEwen

Head of communications and membership development