The ASF continues to monitor the EU reporting regulation for the non-European area (third country issuers).
Following
the submission of a letter signed by a group of global associations (including the ASF) to the Joint Committee of the European Supervisory Authorities regarding Article 5(1)(e) of the Securitisation Regulation in December, the Association for Financial Markets in Europe (AFME) has met with the European Securities and Markets Authority (ESMA) on 3 March to discuss the letter and seek clarification on compliance by third country issuers. While ESMA acknowledged that the joint letter sets out genuine policy issues, it indicated they chose not to send an acknowledgement letter as it would have caused delay.
ESMA advised that it plans to work on the issue and revert with a clear response.
Timing for resolution is not certain as internal consultations will be required with various European Securities Authorities (ESA) and National Competent Authorities (NCA). ESMA noted that any improved outcomes from the revision of the disclosure templates for private transactions should reduce the gap between EU and non-EU issuers, however they are worried that until the new, improved templates are available for use, NCAs will be running the risk of receiving data of lower standard and accordingly are concerned that third country disclosure requirements are less rigorous than those established by the SECR.
ESMA also queried whether the requested forbearance should apply until the end of the disclosure templates revision/consultation or until the implementation of the new template. (
The joint associations letter suggested forbearance to apply until the finalisation of the new private securitisations template.) Lastly, they noted that any forbearance provided should be established on a very sound legal basis.
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