As widely anticipated, the European Commission has published the draft legislative proposals implementing those aspects of the Capital Markets Union (CMU) Action Plan that harmonise and simplify existing rules on due diligence, risk-retention and transparency, and establish a new European framework for Simple, Transparent and Standardised (STS) securitisation, in the form of a Securitisation Regulation (amending the Capital Requirements Directive IV (CRD IV), the Regulation on Credit Rating Agencies, as amended (CRA III), Solvency II, The European Market Infrastructure Regulation (EMIR), and the Markets in Financial Instruments Directive (MiFID), as well as several Delegated Acts under those pieces of legislation) and a Regulation Amending the Capital Requirements Regulation (CRR), which proposes a revised prudential treatment for all securitisations, including those designated as STS. Both proposals (together, the "securitisation proposals") are summarised in detail in our Feature Piece in this Edition of the SCM Briefing. A Consultation Document on an EU framework for Covered Bonds also forms part of the CMU Action Plan and is also outlined further in our Feature. The CMU Action Plan also notes that detailed amendments to the Prospectus Directive (which were expected to be released at the same time as the CMU Action Plan) will now be released at a later stage, but before the end of 2015. Other aspects of the CMU Action Plan focus on venture capital and establishing new rules on the Solvency II treatment of infrastructure projects (which are outside the scope of our present Feature). In conjunction, the Commission has also released a Call for Evidence on the EU regulatory framework for financial services, which is intended to gather views on the appropriateness and efficacy of the EU post-global financial reforms introduced to date within the EU, and which may result in additional future legislative proposals. The securitisation proposals will now be subject to trialogue negotiations (amongst the European Commission, Council and Parliament), with a general approach expected to be agreed by early 2016 and the final legislative texts to be issued by the third or fourth quarter of 2016.
European Commission CMU Webpage (containing links to the CMU Action Plan and all accompanying legislative proposals and consultative material)