[ParlTrack]

Proposal for a regulation
Recital 23

(23) Th~~e involvement of third parties in helping~~ird parties may be requested to check compliance of a securitisation with the STS requirements as their involvement may be useful for investors, originators, sponsors and SSPE's and could contribute to increase confidence in the market for STS securitisations. However, it is essential that investors make their own assessment, take responsibility for their investment decisions and do not mechanistically rely on such third parties. Third party checks should not affect in any way the liability of the originator, sponsor or SSPEs for their legal obligations under this Regulation.

2016/07/27
Committee: ECON

Danuta Maria HÜBNER

Proposal for a regulation
Recital 23 a (new)

(23 a) In order to provide investors with reliable and independent opinions on the compliance of a securitisation with the STS criteria, it is appropriate to lay down rules and criteria ensuring that third parties are authorised to check such compliance only when there are no risk of conflicts of interest with the originator, lender or SSPEs.

2016/07/27
Committee: ECON

Danuta Maria HÜBNER

Proposal for a regulation
Article 14 – paragraph 3 a (new)

3a. The originator, sponsor or SSPE may use the service of an authorised third party to check whether a securitisation complies with the STS criteria. However, such resort to a third party shall not affect in any way the liability of the originator, sponsor or SSPE for their legal obligations under this Regulation.

2016/07/27
Committee: ECON

Danuta Maria HÜBNER

Proposal for a regulation
Article 14 a (new)

Article 14 a Authorised third parties 1. A third party checking compliance with STS criteria under article 14(3a) shall be authorised by ESMA. Authorisation shall be granted only if the following conditions are complied with: (a) the third party charges non- discriminatory and cost-based fees to the originators, sponsors or SSPEs involved in the securitisations that it assesses and the fees are not based on, or correlated to, the results of the assessment; (b) the third party is neither a regulated entity as defined in Article 2(4) of Directive 2002/87/EC nor a credit rating agency as defined in Article 3(1) point (b) of Regulation (EC) No 1060/2009, and the performance of the other activities of the third party shall not compromise the independence or integrity of its assessment; (c) the third party does not provide any form of advisory, audit or equivalent service to the originator, sponsor or SSPE involved in the securitisations that it assesses; (d) the members of the management body of the third party have professional qualifications, knowledge and experience that are adequate for the task of the third party and they are of good repute and integrity; (e) the management body of the third party includes at least half, but no less than two, independent directors representing investors active in the STS securitisation market; (f) the third party takes all necessary steps to ensure that the verification of STS compliance is not affected by any existing or potential conflicts of interest or business relationship involving the third party, its shareholders or members, managers, employees or any other natural person whose services are placed at the disposal or under the control of the third party. To that end, the third party shall establish, maintain, enforce and document an effective internal control system governing the implementation of policies and procedures to identify and prevent potential conflicts of interest. Potential or existing conflicts of interest which have been identified shall be eliminated or mitigated and disclosed without delay. The third party shall establish, maintain, enforce and document adequate procedures and processes to ensure the independence of the assessment of STS compliance and to ensure that the third party acts in the best interest of investors in the securitisations that it examines. The third party shall periodically monitor and review those policies and procedures in order to evaluate their effectiveness and assess whether it is necessary to update them; (g) the third party can demonstrate that it has adequate operational safeguards and internal processes that enable it to assess STS compliance. 2. Failure to comply with the conditions set out above shall result in withdrawal of the authorisation by ESMA.

2016/07/27
Committee: ECON

4 Amendments of Danuta Maria HÜBNER related to 2015/0226(COD)

ParlTrack - 2011-2024