ALFI responds to the ESMA consultation paper on the securitisation disclosure templates under Article 7 of the securitisation regulation

ALFI has in the past responded to the EU commission consultation on the functioning of the EU Securitisation Regulation (“SECR”). The SECR, which was aimed at laying down rules for securitisations and developing a simple, transparent and standardised securitisation market. ALFI has in the past commented that overall these objectives have not or have only partially been achieved. ALFI welcomed the findings of the subsequent EU commission report on the functioning of the SECR and written to the EU commission and ESMA with an appeal to address this matter urgently.

The main concerns that ALFI has highlighted are the impact of the SECR in terms of triggering material additional human and financial costs without any obvious added-value, especially as far as institutional investors are concerned.

Moreover, the SECR has generated some adverse effects, such as disadvantaging EU institutional investors, in particular to the accessibility of EU institutional investors to the third country securitisation markets. For this reason, we are glad that the disclosure templates subject Article 7 SECR are herewith under review.

ALFI proposes to opt for option C and the implementation thereof, as the industry really needs viable short-term solutions to address existing compliance challenges.

View the ALFI response.