The European Commission (the “Commission”) has now adopted and published the draft regulatory technical standards (the “Draft RTS”) in relation to the transparency requirements under the EU Securitisation Regulation (the “Securitisation Regulation”). The Draft RTS are based on the draft regulatory technical standards published by the European Securities and Markets Authority on 31 January 2019 (the “ESMA Draft RTS”) and set out the information to be provided with respect to the underlying exposures in a securitisation and in the investor reports. The related implementing technical standards (the “ITS”), which set out the reporting templates, have not yet been adopted.
The next stage in the process is for the Draft RTS to be approved by the European Parliament (the “Parliament”) and the Council of the European Union (the “Council”). The Parliament and the Council have a three month ‘non-objection’ period in which to do so. Again, it is not expected that there will be any material changes made during this process. Once approved, the Draft RTS will be published in the Official Journal and they are expected to come into force 20 days after the date of such publication. We assume that the ITS will need to be adopted by the Commission and approved by the Parliament and the Council so that they will come into force at the same time. This means that the Draft RTS and ITS are likely to come into effect in Q1 2020 (likely to be February 2020 at the earliest). No transitional period is expected to apply, and consequently it would be advisable for market participants to ensure that they are ready to comply with the new reporting requirements once the RTS and ITS come into force.
This topic is covered in more detail in the Legal Update.