The securitisation market is set for a
shakeup next year with much of the new Securitisation
Regulation set to come into force. The market is concerned that
the new rules surrounding the setting up of third-party
verification (TPV) agents are both unclear and resource
intensive. The rule change also could coincide with a drop in
demand for collateralised loan obligations (CLOs).
Currently only two firms have applied to
be a TPV, which can be used by a sponsor, originator or
securitisation vehicle to check whether a securitisation
fulfils the simple, transparent and secure (STS) criteria.
Jonathan Walsh, partner at
Ashurst said anyone thinking of setting up business will
need to hit the ground running.
"The role is going to be one made up of a coordinator and a
facilitator," he said. "It will be an awful lot of work to
undertake: the notification template is going to be