Consultation responses highlight concerns

摘要

The European Commission released the public responses to both its simple, transparent and standardised (STS) securitisation and Capital Markets Union (CMU) consultations last week, highlighting some differing opinions between market participants. The fact that it received 120 and 425 responses respectively shows industry participants were keen to get their points across. The Commission will summarise the securitisation answers to 19 questions market players were asked in the near future, but the more substantial paper for the CMU consultation should be summarised in September. Some responses reiterated previous industry concerns, such as why securitisation attracts more punitive charges than other assets classes like covered bonds, how the market needed standardised information, market participants wanting risk retention rules to be less onerous for investors and highlighting a need to make securitisation more attractive as both a funding tool and as a risk transfer mechanism.