Towards a European standard for the securitisation market: what are the challenges for financial players?
The establishment of a European standard for “good securitisation” should revive a market that is considered to be good for the economy.
In the framework of the Capital Markets Union, intensifying the shift of financial intermediation towards the markets is a priority for Brussels. Since 1 January 2019, new rules in favour of “good securitisation” are applicable. They are carried by the French regulator in the framework of the PACTE law (art. 206). The aim is to revive a market deemed to be conducive to the economy, while learning the lessons of the 2008 financial crisis. In 2020, the calibration of the regulation will be fully effective after the complete validation of the RTS standards, specifying the additional information desired by market players.
In the future, what will be the major challenges of this new European framework? What are the business and functional impacts to come? Are there any obstacles to its proper implementation in the activity of banking and insurance players?