On 3 September 2020, seven important pieces of secondary legislation supplementing Regulation (EU) 2017/2402 ("Securitisation Regulation") were published in the Official Journal of the European Union, as follows:
regulatory technical standards specifying the information and details of a securitisation to be made available by the securitisation special purpose entity ("SSPE"), originator and sponsor ("Transparency RTS");1
implementing technical standards with regard to the format and standardised templates for making available the information and details of a securitisation by the originator, sponsor and SSPE ("Transparency ITS");2
regulatory technical standards3 and implementing technical standards4 with regard to the format and details of applications for registration as a securitisation repository or for the extension of a registration of a trade repository pursuant to the Securitisation Regulation;
regulatory technical standards on securitisation repository operational standards for data collection, aggregation, comparison, access and verification of completeness and consistency;5
regulatory technical standards and implementing technical standards specifying the information to be provided in accordance with the simple, transparent and standardised ("STS") notification requirements.6
The full text of the above regulatory technical standards ("RTS") and implementing technical standards ("ITS") is available here.
The publication of the RTS and ITS is an important step for the securitisation market. In particular, the publication of the Transparency RTS and of the Transparency ITS has been long awaited by market participants. While the market had, since the publication of the draft Transparency RTS and the Transparency ITS in October 2019, begun to adopt the disclosure requirements and the reporting templates set out in the previous drafts, the fact that no further amendments were made to the draft requirements or templates will be welcome news for the industry and it provides certainty to the market.
Upon the entry into force of the Transparency RTS and the Transparency ITS, the transitional provisions in article 43(8) of the Securitisation Regulation (which provided for the use of reporting templates as set out in Article 8b of the CRA 3)7 will cease to apply and compliance with the Transparency RTS and the Transparency ITS will become mandatory for all existing transactions.
The abovementioned RTS and ITS will come into force on 23 September 2020 (i.e., 20 days following their publication in the Official Journal of the European Union) ("Effective Date").
Market participants should ensure that their systems and processes are fully prepared to ensure compliance with the Transparency RTS and the Transparency ITS from the Effective Date and that any legacy transaction documentation is updated or clarified to reflect the new requirements.