The view that generally emerged in the panel discussions was that the criteria for STS securitisation were not well defined and insufficiently clear, making self-certification difficult for originators, particularly as they would have no support from supervision. The interplay of ill-defined criteria, self-certification and extremely severe sanctions for incorrect self-certification (e.g. fines ranging from at least EUR 5 million to 10% of turnover) will not lead to broad market acceptance of the rules, particularly as the pending capital requirements for investors would be far higher than at present – even if STS classification were achieved – and thus rule out the establishment of a level playing field with alternative investments.
In many panel discussions, it also became clear that the criteria for ABCP with leasing and trade receivables – especially the idea of limiting the term to two years – are not practicable.
Attention was drawn to the importance of synthetic securitisation for the pending capital markets union – especially in the area of SME financing – and to the fact that if synthetic transactions are correctly structured, they could turn out to be far simpler, more standardised and more transparent than true sale transactions.
The Congress also took up the issue of the legal framework conditions for securitisations beyond supervisory law. Securitisation law in Luxembourg was taken as an example to illustrate the point.
Participants took a far more positive view of the options for alternative forms of credit transfer, such as credit funds and private placements, that have been newly introduced or discussed in connection with the forthcoming capital markets union than of the drafts of the STS securitisation regulation.
The topic of general financial market regulation was also well covered at the Congress. The participants in several panel discussions called for a comprehensive and neutral overview of the impact of the financial market regulations since 2010 on the financial markets and financial market stability in Europe.
The panel on peer-to-peer lending and FinTechs was particularly well attended; these are benefiting from excessive banking regulation and are becoming formidable competitors for banks.
Nor did the Congress neglect current market developments – particularly auto ABS and the securitisation of trade and leasing receivables, but also green bonds, private infrastructure financing, debt loan certificates, credit funds and ship and aircraft financing.
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