ESMA consults on possible changes to the securitisation disclosure templates

ESMA has initiated a consultation on potential changes to the securitisation disclosure templates. The revision involves the Disclosure RTS and ITS related to specific information and details of securitisation transactions.
ESMA is seeking stakeholders‘ views on four proposed options for the securitisation disclosure framework:
Option A: Putting the template review on hold until the revision of the Level 1 text.
Option B: Expanding the current framework with a few amendments to the existing disclosure templates.
Option C: Focusing on a targeted review for streamlining information and developing a new simplified template for private securitisations only.
Option D: Undertaking a thorough review of the current disclosure framework with a significant simplification of the templates.
The consultation will be open until 15 March 2024, and ESMA will consider the feedback received for subsequent work on this topic. The initiative follows the EC’s report on the functioning of the Securitisation Regulation, which identified areas for improvement, particularly in transparency requirements.
The background outlines the securitisation disclosure framework, including the Securitisation Regulation, which became applicable in January 2019. Article 7 of the regulation sets out transparency requirements for all securitisations, the existing technical standards, Disclosure RTS and Disclosure ITS, were adopted in September 2020, providing 14 reporting templates.
The consultation paper presents the four policy options mentioned above, and the next steps involve considering feedback to determine the best approach for revising the disclosure framework. The EC’s report highlighted concerns about the transparency regime, including challenges related to supervisory responsibilities, private securitisation requirements, and the need for a more specific legal definition for private securitisations.