We summarize our initial experience and highlight some pitfalls with preparing ESMA-compliant securitisation disclosures.
The new regulatory disclosure regime for European securitisation transactions entered into force on September 23rd and imposes a number of challenges on reporting entities. We summarize our initial experience with preparing ESMA-compliant securitisation disclosures and distinguish general lessons learned for all types of securitisations from those related to non-performing loan (NPL) securitisations. We highlight some pitfalls and caution reporting entities that meeting the regulatory disclosure demands require substantial adjustments to their reporting technology.
Public securitisation transactions will soon be required to report to securitisation repositories. Private transactions such as many European NPL securitisations, synthetic risk transfer deals, CLO, CMBS, or SPV-based warehouse facilities fall under the securitization regulation with similarly detailed reporting demands and need to adjust their reporting as well. Private non-ABCP transaction must report all relevant disclosure annexes except the annex related to significant events (Annex 14). Private transactions need not deliver their reports to a repository, but provide investors access on a suitable website which must include a well-functioning data quality control system.
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