The EC’s draft amendment relating to Solvency II to reflect the Securitisation Regulation aligns its definitions of “securitisation” and “STS securitisation” and inserts a replacement Article 178 into the existing CDR, which contains new tables allocating capital requirement allocations depending on the maturity and credit quality (senior or non-senior, STS or not) of the securitisation position in question, and sensibly cross-refers to the new Article 243 (“Criteria for STS securitisations“) of the amended CRR. It is due to be applicable from 1st January 2019. The capital allocation for the holding of a senior STS securitisation position will be favourable. AFME comments that “treatment of STS non-senior positions remains highly problematic”. Consultation runs until 15th May. Will this get insurers back into the market, and boost demand for STS?