The signatories share the following views:

• Securitisation is an important element of well-functioning financial markets. Prudently deployed and sensibly regulated, it can:

o act as a bridge between the banks’ financing and the capital markets;

o enable non-banks to diversify funding sources; and

o provide investors with high quality fixed income securities at attractive yields.

• Securitisation should be treated on a level playing field with other forms of investment. The significant differential treatment in regulations affecting capital, liquidity, transparency and disclosure and derivatives, when compared with other investment instruments, are undermining the ability to use securitisation as a financing tool in Europe.

This paper presents high level perspectives on the Commission’s proposals1. We have identified below several key points to consider in the development of a robust and successful STS framework.