On 21 December 2023, the European Securities and Markets Authority (ESMA) unexpectedly issued a consultation paper on the overhaul of the disclosure templates under Article 7 of the Securitisation Regulation which include the disclosure of information related to the structure of the securitisation transaction, the underlying exposures and the performance of the transaction.
In October 2022, the European Commission published a report on the functioning of the Securitisation Regulation, identifying a number of targeted improvements in its functionality. Among the areas marked for improvement, the Commission noted the necessity for a series of measures to improve the functioning and efficacy of the transparency requirements and invited ESMA to review the technical standards pertaining to the disclosure framework.
ESMA has launched the consultation paper to gather evidence regarding the costs and benefits with pursuing different approaches to address the review. The paper provides a useful overview of the Securitisation Regulation disclosure regime and insights into ESMA's engagement with a diverse set of stakeholders following the recommendation to review the disclosure framework.
ESMA presents several options for the way forward which, in summary, include:
- Delaying the review of the templates until further changes to the Level 1 text;
- Maintaining the current framework with the introduction of some amendments;
- Streamlining the disclosure templates for public deals and developing a dedicated template for private securitisation; and
- A thorough review of the disclosure templates, aiming at a fundamental simplification of the framework.
The deadline for comments on the consultation paper is 15 March 2024.
View the consultation paper here.
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