Draft Guidelines on the STS criteria for ABCP securitisation

The European Banking Authority (EBA) launched today a public consultation on its draft Guidelines, which will provide a harmonised interpretation of the criteria for the securitisation to be eligible as simple, transparent and standardised (STS). The EBA Guidelines will play a crucial role in the new EU securitisation framework, by providing a single point of consistent interpretation of the STS criteria to originators, sponsors, investors and competent authorities throughout the Union. The consultation runs until 20 July 2018.

The Guidelines, developed for both non asset-backed commercial paper (ABCP) and ABCP securitisation, clarify and ensure common understanding of all the STS criteria, including those related to the expertise of the originator and servicer, the underwriting of standards, exposures in default and credit impaired debtors, and predominant reliance on the sale of assets.

The Guidelines will be applied on a cross-sectoral basis throughout the Union with the aim of facilitating the adoption of the STS criteria, which is one of prerequisites for the application of a more risk-sensitive regulatory treatment under the new EU securitisation framework.

Consultation process

Responses to this consultation can be sent to the EBA by clicking on the "send your comments" button on the consultation page. Please note that the deadline for the submission of comments is 20 July 2018.

A public hearing will take place at the EBA premises on 11 June 2018 from 14:00 to 16:00 UK time.

Legal basis and next steps

The Guidelines have been developed according to Articles 19(2) and 23(3) of the Securitisation Regulation, which mandates the EBA, in close cooperation with ESMA and EIOPA, to adopt guidelines and recommendations on the harmonised interpretation and application of the criteria related to simplicity, transparency and standardisation for the non-ABCP securitisations, and transaction level and programme level criteria for the ABCP securitisations.