[ParlTrack]

Proposal for a regulation
Recital 6 a (new)

(6 a) A sponsor should be able to delegate tasks to a servicer, but should remain responsible for all its obligations under this Regulation.

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Recital 12

(12) It is important that the interests of originators, sponsors and original lenders that ~~transform exposures into tradable~~are involved in a securitiesation and investors are aligned. To achieve this, the originator, sponsor or original lender should retain a significant interest in the underlying exposures of the securitisation. It is therefore important for the originators or the sponsors to retain a material net economic exposure to the underlying risks in question. More generally, securitisation transactions should not be structured in such a way so as to avoid the application of the retention requirement. That requirement should be applicable in all situations where the economic substance of a securitisation is applicable, whatever legal structures or instruments are used. There is no need for multiple applications of the retention requirement. For any given securitisation, it suffices that only the originator, the sponsor or the original lender is subject to the requirement. Similarly, where securitisation transactions contain other securitisations positions as underlying exposures, the retention requirement should be applied only to the securitisation which is subject to the investment. The STS notification indicate to investors that originators are retaining a material net economic exposure to the underlying risks. Certain exceptions should be made for cases when securitised exposures are fully, unconditionally and irrevocably guaranteed by in particular public authorities. In case support from public resources provided in the form of guarantees or by other means, any provisions in this Regulation are without prejudice to State aid rules.

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Recital 16

(16) In synthetic securitisations ~~which are not 'true sale'~~, the underlying exposures are not transferred to such an issuer entity, but rather the credit risk related to the underlying exposures is transferred by means of a derivative contract or guarantees. ~~This introduces an additional counterparty credit risk and potential complexity related in particular to the content of the derivative contract.~~ To date, no analysis on an international level or Union level has been sufficient to identify STS criteria for those types of securitisation instruments. An assessment in the future of whether some synthetic securitisations that have performed well during the financial crisis and are simple, transparent and standardised are therefore eligible to qualify as STS would be essential. On this basis, the Commission will assess whether securitisations which are not 'true sale' should be covered by the STS designation in a future proposal.

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Recital 37

(37) For securitisation positions outstanding as of the date of entry into force of this Regulation, originators, sponsors and SSPEs may use the designation 'STS' provided that the securitisation complies with certain of the STS requirements specified in this Regulation. Therefore, originators, sponsors and SSPEs should be able to submit an STS notification pursuant to Article 14 (1) of this Regulation to ESMA.

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Recital 38

(38) The due diligence requirements are essentially taken over from existing Union law and should thus apply to securitisations issued on or after 1 January 2011 and to securitisations issued before that date, where new underlying exposures have been added or substituted after 31 December 2014. The relevant articles of Commission Delegated Regulation (EU) No 625/2014 that specify the risk retention requirements for credit institutions and investments firms as defined in Article 4(1) (1) and (2) of Regulation (EU) No 2013/575 should remain applicable until the moment that the regulatory technical standards on risk retention pursuant to this Regulation become of application. For reasons of legal certainty, credit institutions or investment firms, insurance undertakings, reinsurance undertakings and alternative investment fund managers should, for securitisation ~~positions outstanding as of~~s falling within the scope of Article 404 of Regulation (EU) No 575/2013 immediately prior to the entry into force of this Regulation; continue to be subject to Article 405 of Regulation (EU) No 575/2013 and to Chapter 1, 2 and 3 and Article 22 of Commission Delegated Regulation (EU) No 625/2014, Articles 254 and 255 of Commission Delegated Regulation (EU) 2015/35 and Article 51 of Commission Delegated Regulation (EU) No 231/2013 respectively. Those Articles, and Article 4 of Regulation (EU) No 575/2013 for relevant transactions established prior to the adoption of updated regulatory technical standards, should be read in accordance with the provisions of Chapters 1, 2 and 3 and Article 22 of Commission Delegated Regulation (EU) No 625/2014. In order to ensure that originators, sponsors and SSPE's comply with their transparency obligations , until the moment that the regulatory technical standards to be adopted by the Commission pursuant to this Regulation apply, make the information mentioned by Annexes I to VIII of Delegated Regulation 2015/3/EU available to the website referred to in Article 5 (4) of this Regulation.

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Article 1 – paragraph 2

2. This Regulation applies to institutional investors becoming exposed to ~~securitisation and~~the credit risk of a securitisation. This Regulation also applies to originators, original lenders, sponsors and securitisation special purpose entities, in each case, provided that the relevant entity is established in the Union and is involved in the securitisation.

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Article 2 – paragraph 1 – point 8

(8) 'asset-backed commercial paper (ABCP) transaction' or 'ABCP transaction’ means a securitisation ~~within~~funded in whole or part by an ABCP programme;

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Article 2 – paragraph 1 – point 11

(11) 'investor' means a person holding ~~securities~~a credit risk exposure resulting from a securitisation;

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Article 2 – paragraph 1 – point 18 a (new)

(18 a) 'securitisation position' means a credit exposure to a securitisation;

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Article 2 – paragraph 1 – point 18 b (new)

(18b) 'public securitisation' means a credit exposure to a securitisation where: (a) some or all of the resulting securitisation positions held by investors are in the form of financial instruments within the meaning of Directive 2014/65/EU; and (b) those financial instruments are or have been issued in circumstances requiring either: (i) the publication of a prospectus in accordance with Article 3 of Directive 2003/71/EC; or (ii) the publication of an offering document in accordance with national law or the rules of the trading venue on which such financial instruments are admitted to trading;

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Article 3 – paragraph 1 – introductory part

1. An institutional investor, other than the originator, sponsor or original lender of a securitisation, shall verify before becoming exposed to athe credit risk of the securitisation that:

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Article 3 – paragraph 1 – point a

(a) where the originator or original lender is not a credit institution or investment firm as defined in Article 4(1), points (1) and (2) of Regulation (EU) No 575/2013, the originator or original lender grants ~~all its~~relevant credits on the basis of sound and well-defined criteria and clearly established processes for approving, amending, renewing and financing those credits and has effective systems in place to apply these criteria and processes;

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Article 3 – paragraph 1 – point b

(b) the originator, sponsor or original lender retains a material net economic interest in accordance with Article 4 of this Regulation and discloses it to the institutional investor in accordance with: (i) Article 54, in the case of a securitisation issued on or after the date of entry into force of this Regulation or of a securitisation to which this Regulation applies pursuant to Article 28(4a); or (ii) any applicable requirements under Article 28(4b), in the case of a securitisation issued prior to the date of entry into force of this Regulation;

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Article 3 – paragraph 1 – point c

(c) one or more of the originator, sponsor ~~and~~or SSPE has makde available ~~the information required by Article 5 of this Regulation in accordance with the frequency and modalities provided in that Article;~~ , or agreed to make available, sufficient information for the purposes of making the assessments referred to in Article 3(2) and Article 3(3) of this Regulation;

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Article 3 – paragraph 2 – introductory part

2. Before becoming exposed to the credit risk of a securitisation, institutional investors shall also carry out a due diligence assessment commensurate with the risks involved including at least the following aspects:

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Article 3 – paragraph 3 – introductory part

3. Institutional investors that are exposed to the credit risk of a securitisation shall at least:

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

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

3a. Without prejudice to paragraphs (1) to (3) of this Article, where an institutional investor has given investment firms or regulated asset managers the power to make investment management decisions that might expose it to a securitisation, the institutional investor may instruct those investment firms or regulated asset managers to fulfil its obligations under this Article in respect of any exposure to a securitisation arising from such decisions. Member States shall ensure that where an institutional investor is instructed pursuant to this paragraph to fulfil the obligations of another institutional investor and fails to do so, any sanction that may be imposed for the purposes of Article 17 and 18, shall be imposed on the managing institutional investor and not the institutional investor who is exposed to the securitisation.

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Article 4 – paragraph 1 – subparagraph 1

TIf established in the Union and directly involved in the securitisation, the originator, sponsor or the original lender of a securitisation shall retain on an ongoing basis a material net economic interest in the securitisation of not less than 5 %. Where the originator, sponsor or the original lender have not agreed between them who will retain the material net economic interest, the originator shall retain the material net economic interest. There shall be no multiple applications of the retention requirements for any given securitisation. The material net economic interest shall be measured at the origination and shall be determined by the notional value for off-balance sheet items. The material net economic interest shall not be split amongst different types of retainers and not be subject to any credit risk mitigation or hedging. Where a third country-established entity which is an originator, sponsor or original lender commits to retain on an ongoing basis a material net economic interest in the securitization of not less than 5 % in accordance with this Article, it shall not be necessary for an EU-established entity as set out in the first subparagraph to comply with this requirement.

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Article 5 – paragraph 1 – introductory part

1. The originator, sponsor ~~and~~or SSPE of a securitisation shall, in accordance with paragraph 2, ~~make~~ensure that: (a) in the case of a public securitisation, at least the ~~following~~ information ~~available to holders of a securitisation position and to the~~set out in paragraph 1a is made publicly available; (b) in the case of a private securitisation, at least the information set out in paragraph 1b is made available to investors and, upon request, to national competent authorities as referred to in Article 15 of this Regulation.

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Article 5 – paragraph 1 – point e – point iii

(iii) information about the risk retained, including who retains it and how it is retained, in accordance with: - Article 4 ~~and the information required pursuant to paragraph 3~~, in the case of a securitisation issued on or after the date of entry into force of this Regulation or of a securitisation to which this Regulation applies pursuant to Article 28(4a); or - any applicable requirements under Article 28(4b), in the case of a securitisation issued prior to the date of entry into force of this Regulation.

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Article 5 – paragraph 1 a (new)

1a. For public securitisations, the following information shall be made publicly available: (a) information on the exposures underlying the securitisation on a quarterly basis; (b) where applicable, the following documents, including a detailed description of the priority of payments of the securitisation: (i) the final offering document or the prospectus together with the closing transaction documents, excluding legal opinions; (ii) for traditional securitisation, the asset sale agreement, assignment, novation or transfer agreement and any relevant declaration of trust; (iii) the derivatives and guarantees agreements and any relevant documents on collateralisation arrangements where the exposures being securitised remain exposures of the originator; (iv) the servicing, back-up servicing, administration and cash management agreements; (v) the trust deed, security deed, agency agreement, account bank agreement, guaranteed investment contract, incorporated terms or master trust framework or master definitions agreement or such legal documentation with equivalent legal value; (vi) any relevant inter-creditor agreements, derivatives documentation, subordinated loan agreements, start-up loan agreements and liquidity facility agreements; (vii) any other underlying documentation that is essential for the understanding of the transaction; (c) where a prospectus has not been drawn up in compliance with Directive 2003/71/EC of the European Parliament and of the Council[1], a transaction summary or overview of the main features of the securitisation, including, where applicable: (i) details regarding the structure of the deal; (ii) details regarding the exposure characteristics, cash flows, credit enhancement and liquidity support features; (iii) details regarding the voting rights of the holders of a securitisation position and their relationship with other secured creditors; (iv) a list of all triggers and events referred to in the documents provided to in accordance with point (b) that could have a material impact on the performance of the securitisation instrument; (v) the structure diagrams containing an overview of the transaction, the cash flows and the ownership structure; (d) in the case of STS securitisations, the STS notification referred to in Article 14 (1) of this Regulation; (e) quarterly investor reports containing the following: (i) all materially relevant data on the credit quality and performance of underlying exposures; (ii) data on the cash flows generated by the underlying exposures and by the liabilities of the securitization and information on the breach of any triggers implying changes in the priority of payments or replacement of any counterparties; (iii) information about the risk retained in accordance with Article 4 and the information required pursuant to paragraph 3. (f) where applicable, information pursuant to Article 17 of Regulation (EU) No 596/2014 of the European Parliament and of the Council[2] on insider dealing and market manipulation; (g) where subparagraph (f) does not apply, any significant event such as: (i) a material breach of the obligations laid down in the documents provided in accordance with point (b), including any remedy, waiver or consent subsequently provided in relation to such a breach; (ii) a change in the structural features that can materially impact the performance of the securitisation; (iii) a significant change in the risk characteristics of the securitisation or of the underlying exposures; (iv) in the case of STS securitisations, where the securitisation ceases to meet the STS requirements or where competent authorities have taken remedial or administrative actions; (v) any material amendment to transaction documents. [1] Directive 2003/71/EC of the European Parliament and of the Council of 4 November 2003 on the prospectus to be published when securities are offered to the public or admitted to trading and amending Directive 2001/34/EC (OJ L 345, 31.12.2003, p. 64). [2] Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (OJ L 173, 12.6.2014, p. 1).

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Article 5 – paragraph 3 – point a

(a) the information that the originator, sponsor ~~and~~or SSPE should provide to comply with their obligations under paragraph 1(a) and (d) and the format thereof by means of standardised templates;

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Article 5 a (new)

Article 5 a Third country equivalence For the purposes of this Regulation, the obligation of originators or original lenders that are established in a third country to comply with Articles 3 and 4 shall be deemed to be met if the originators or original lenders comply with the legal framework applying to securitisation of that third country.

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Article 5 b (new)

Article 5 b Criteria for credit-granting 1. Originators and original lenders shall apply to exposures to be securitised the same sound and well-defined criteria for credit-granting which they apply to non-securitised exposures. To that end, the same clearly established processes for approving and, where relevant, amending, renewing and re-financing credits shall be applied. Originators and original lenders shall have effective systems in place to apply those criteria and processes in order to ensure that credit-granting is based on a thorough assessment of the obligor's creditworthiness taking appropriate account of factors relevant to verifying the prospect of the obligor to meet his obligations under the credit agreement. 2. Where an originator purchases a third party's exposures for its own account and then securitises them, that originator shall verify that the entity which was, directly or indirectly, involved in the original agreement which created the obligations or potential obligations to be securitised fulfils the requirements in accordance with the first paragraph.

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Article 7 – paragraph 1

Securitisations, except ABCP programmes, ABCP transactions and other private securitisations, that meet the requirements in Articles 8, 9 and 10 of this Regulation shall be considered 'STS'.

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Article 7 – paragraph 1 a (new)

In addition to the STS securitisations referred to in paragraph 1, securitisations established prior to … [date of entry into force of this Regulation], except ABCP programmes, ABCP transactions and other private securitisations, that meet the following requirements may use the designation 'STS' or 'simple, transparent and standardise' or a designation that refers directly or indirectly to those terms only where the requirements set out in Article 8(1), 8(3), 8(4), 8(5), 8(6), 8(9), 9(2), 9(3) and 10 (3) are complied with, subject to the following: (a) if the transaction documentation allows for active portfolio management, the requirement set out in Article 8(3) will be met if the originator, sponsor and SSPE directly involved in the securitisation undertake in the STS notification not to engage in any such active portfolio management; (b) the requirements set out in Article 8(6) will be met, provided that material changes to underwriting standards need only be disclosed on a prospective basis from the date of the STS notification; (c) the requirements set out in Article 9(2) will be met, provided that the disclosure of interest rate and currency risk mitigation measures may be made in the STS notification; (d) the requirements set out in Article 10(3) will be met provided that the liability cash flow model need only be provided on a prospective basis from the date of the STS notification; (e) the originator, sponsor or SSPE ensures that investors have readily available access to all materially relevant data on the credit quality and performance of the individual underlying exposures, cash flows and collateral supporting the securitisation as well as such information that is necessary to conduct comprehensive and well- informed stress tests on the cash flows and collateral values supporting the underlying exposures; for these purposes, materially relevant data shall be determined at the date of the securitisation and, where appropriate, due to the nature of the securitisation thereafter.

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Article 8 – paragraph 8

8. The debtors or the guarantors shall ~~have~~, at the time of transfer of the exposures, have made at least one payment, except in the case of revolving securitisations backed by ~~personal overdraft facilities, credit card receivables, trade receivab~~exposures payable in a single instalment or having a maturity of less ~~and dealer floorplan finance loans or exposures payable in a single instalment~~than one year, including without limitation monthly payments on revolving credits.

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Article 9 – paragraph 1

1. The originator, sponsor or ~~the~~ original lender shall ~~satisfy the risk retention requirement in accordance with Article 4~~retain a material net economic interest in accordance with: (a) Article 4, in the case of a securitisation issued on or after the day of entry into force of this Regulation or otherwise of a securitisation to which this Regulation applies pursuant to Article 28(4a); or (b) any applicable requirements under Article 28(4b), in the case of a securitisation issued prior to the date of entry into force of this Regulation.

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Article 10 – paragraph 4

4. The originator, sponsor and SSPE shall ~~be jointly responsible for compliance~~comply with Article 5 of this Regulation and shall make all information required by Article 5(1) (a) available ~~to potential investors~~, in accordance with paragraph 4a, before pricing. The originator and, sponsor and SSPE shall make the information required by Article 5 (1~~) (b) to (e) available before pricing at least in draft or initial form, where permissible under Article 3 of Directive 2003/71/EC~~a) (b) to (e) and 5(1b) (b) to (e) available, in accordance with paragraph 4a of this Article, before pricing at least in draft or initial form. The originator, sponsor and SSPE shall make the final documentation available ~~to investors~~, in accordance with paragraph 8a, at the latest 15 days after closing of the transaction.

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Article 10 – paragraph 4 a (new)

4a. For public securitisations, the information referred to in paragraph 4 shall be made publicly available. For private securitisations, the information referred to in paragraph 4 shall be made available to investors and, upon request, to national competent authorities.

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Chapter 3 – section 2 – title

Requirements for ABCP and private Securitisation

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Article 11 – title

Simple, transparent and standardised ABCP ~~Securiti~~programmes, ABCP transactions and private securitisations

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Article 11 – paragraph 1

ABCP transactions and other private securitisations shall be considered 'STS' where the ABCP programme complies with the requirements in Article 13 of this Regulation and all transactions within that ABCP programme fulfil the requirements in Article 12.

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Article 12 – paragraph 2

2. ~~Transactions within an ABCP programme~~ABCP and private securitisations shall be backed by a pool of underlying exposures that are homogeneous in terms of asset type and shall have a remaining weighted average life of no more than ~~two~~five years and none shall have a residual maturity of longer than ~~three~~seven years. The underlying exposures shall not include loans secured by residential or commercial mortgages or fully guaranteed residential loans, as referred to in paragraph 1(e) of Article 129 of Regulation (EU) No 575/2013. The underlying exposures shall contain contractually binding and enforceable obligations with full recourse to debtors with defined payment streams relating to rental, principal, interest, or related to any other right to receive income from assets warranting such payments. The underlying exposures shall not include transferable securities, as defined in Directive 2014/65/EU.

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Article 12 – paragraph 3

3. ~~Any referenced interest payments under~~For the purposes of Article 9(3), in an ABCP transaction, the interest rate or other return on the securitisation transaction's ~~assets and~~ liabilities ~~shall be based on generally used market interest rates, but shall not reference complex formulae or derivatives~~to the ABCP programme may be based on the ABCP programme's cost of funds, including, but not limited to, the costs of issuing commercial paper.

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Article 12 – paragraph 5

5. The underlying exposures shall be originated in the ordinary course of the seller's business pursuant to underwriting standards that are not less stringent than those that the seller applies to origination of similar exposures that are not securitised. Material changes in underwriting standards shall be ~~fully~~ disclosed to ~~potential investors~~the sponsor and other parties directly exposed to the ABCP transaction without undue delay. In the case of securitisations where the underlying exposures are residential loans, the pool of loans shall not include any loan that was marketed and underwritten on the premise that the loan applicant or, where applicable intermediaries, were made aware that the information provided might not be verified by the lender. The seller shall have exper~~tis~~ience in originating exposures of a similar nature to those securitised.

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Article 13 – paragraph 1

1. All transactions within an ABCP programme shall fulfil the requirements ~~of Article 12 of this Regulation~~set out in paragraphs (1a) to (1d), (1h) to (1j) and (3) to (7) of Article 12. At all times, at least 70 % of the aggregate amount of the exposures underlying the transactions within an ABCP programme and which are funded by the programme shall fulfil the requirements set out in paragraphs (1e) to (1g) and (2) of Article 12 . For a period of two years from … [ date of entry into force of this Regulation] up to 20 % of that aggregate amount may be exposures to securitisation transactions that do not fulfil those requirements.

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Article 13 – paragraph 5

~~5. The securities issued by an ABCP programme shall not include call options, extension clauses or other clauses that have an effect on their final maturity.~~deleted

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Article 13 – paragraph 7 – point a

(a) the responsibilities of the trustee and other entities, if any, with fiduciary duties to investors;

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Article 13 – paragraph 7 – point b

~~(b) provisions that facilitate the timely resolution of conflicts between the sponsor and the holders of securitisation positions;~~deleted

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Article 13 – paragraph 7 – point c

(c) contractual obligations, duties and responsibilities of the sponsor, ~~and its management team,~~ who shall have expertise in credit underwriting, the trustee, if any, and other ancillary service providers;

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Article 13 – paragraph 7 – point d

~~(d) processes and responsibilities necessary to ensure that a default or insolvency of the servicer does not result in a termination of servicing;~~deleted

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Article 13 – paragraph 7 – point f – paragraph 1

that upon specified events, default or insolvency of the sponsor remedial steps shall be provided for to achieve, as appropriate, collateralisation of the funding commitment or replacement of the liquidity facility provider. In case the liquidity facility provider does not renew the funding commitment, in case the liquidity facility provider does not renew the funding commitment under a liquidity facility within 30 days ofbefore its expiry, the liquidity facility shall be drawn down, and used to repay the maturing securities ~~shall be repaid~~ and the transactions shall cease to purchase exposures while amortising the existing underlying exposures.

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Article 13 – paragraph 8

8. The ~~originator,~~programme sponsor and ~~SSPE~~issuer shall ~~be jointly responsible for compliance at ABCP programme level with Article 5 of this Regulation~~comply with Article 5 and shall make all information required by Article 5(1~~) (~~a) available ~~to potential investors~~in accordance with paragraph 8a of this Article, before pricing. The originator, sponsor and SSPE shall make the information required by Article 5 (1~~) (b) to (e) available before pricing at least in draft or initial form, where permissible under Article 3 of Directive 2003/71/EC~~a)(b) to (e) and 5(1b)(b) to (e) available in accordance with paragraph 8a, at least in draft or initial form, before pricing . The originator, sponsor and SSPE shall make the final documentation available ~~to investors~~in accordance with paragraph 8a at the latest 15 days after closing of the transaction

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Article 13 – paragraph 8 a (new)

8a. For public securitisations, the information referred to in paragraph 8 shall be made publicly available. For private securitisations, the information referred to in paragraph 8 shall be made available to investors and, upon request, to national competent authorities.

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Article 16 – paragraph 3

3. Competent authorities shall ~~ensu~~require that risks arising from securitisation transactions, including reputational risks, are evaluated and addressed through appropriate policies and procedures of originators, sponsors, SSPE's and original lenders.

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Article 18 – paragraph 2 – introductory part

2. Competent authorities, when determining the type and level of an administrative sanction or remedial measure imposed under Article 17 of this Regulation, shall take into account all relevant circumstances, including, the extent to which the infringement is intentional or results from a factual error, and where appropriate:

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Article 18 – paragraph 3 (new)

3. Sanctions shall be applied in a proportionate manner, which includes consideration of the nature of the breach.

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Article 23 – paragraph 1Directive 2009/65/EC

Article 50a

Article 50a of Directive 2009/65/EC is rep~~ealed~~laced by the following: 'UCITS management companies or internally managed UCITS shall act in the best interest of the investors in the relevant UCITS and take corrective action, if appropriate, where they discover, after the assumption of an exposure to a securitisation, that the securitisation does not meet the requirements laid down in Regulation .../... of the European Parliament and of the Council [STS Regulation], in particular that the determination and disclosure of the retained interest did not meet the requirements laid down in that Regulation.'.

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Article 26 – paragraph 1Directive 2011/61/EU

Article 17

Article 17 of Directive 2011/61/EU is rep~~ealed~~ laced by the following: 'AIFMs shall act in the best interest of the investors in the relevant AIF and take corrective action, if appropriate, where they discover, after the assumption of an exposure to a securitisation, that the securitisation does not meet the requirements laid down in Regulation [STS], especially in particular that the determination and disclosure of the retained interest did not meet the requirements laid down in Regulation [STS].'.

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Article 27 – paragraph 1 – point 1Regulation 648/2012/EU

Article 2 – point 30

(30) “"covered bond”" means a bond meeting the requirements of Article ~~129 of Regulation (EU) No 575/2013~~52(4) of Directive 2009/65/EC."

2016/07/27
Committee: ECON

Morten MESSERSCHMIDT

Proposal for a regulation
Article 28 – paragraph 3

3. In respect of investments made after ... [date of entry into force of this Regulation] in securitisations the securities of which were issued on or after 1 January 2011 and to securitisations issued before that date, where new underlying exposures have been added or substituted after 31 December 2014, Article 3 of this Regulation shall apply.

2016/07/27
Committee: ECON

52 Amendments of Morten MESSERSCHMIDT related to 2015/0226(COD)

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