Uncertainty over third party verifier role concerns securitisation market

Author: Olly Jackson | Published: 17 Aug 2018

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 quite...