Uncertainty continues for EU securitisation

Author: Jimmie Franklin | Published: 19 Nov 2019

EU market participants are concerned about a lack of communication from the European Securities and Markets Authority (ESMA) concerning the recently passed EU securitisation framework.

The framework was heralded as a step forward for the EU’s much delayed Capital Markets Union (CMU), which has been a source of growing frustration in Europe and beyond due to a lack of progress since 2015.

"There is frustration from the industry about the lack of engagement from ESMA," said David Saunders, structurer at Santander. "Proposals for a roundtable or public hearing have gone unanswered and Q and A’s which were submitted in February have not yet been answered."

Implemented on January 1 of this year the framework comprises two regulations: Regulation (EU) 2017/2402 (the Securitisation Regulation) and Regulation (EU) 2017/2401 (the Securitisation Prudential Regulation, or SPR).

When approached, a spokesperson for ESMA said: "it's true that a small number...