Clifford Chance – One of the results of the banking crisis has been the growing role of alternative finance providers who have plugged the gaps that traditional banks can no longer meet. As alternative finance has grown, regulators are focusing on the potential risks it poses.
A Never Ending Road – New aspects in the regulation of securitisation
A year ago, things were looking very uncertain and concerning for the world of securitisation and structured debt. On both sides of the Atlantic, new regulations were being introduced that were threatening to make securitisation a less attractive product area for originators and investors alike. Against this, there was improved mood music from policymakers and regulators about the importance of securitisation, but this was not being reflected in concrete regulatory response.
The picture this year is brighter, if still mixed. The idea of “high quality” or “qualifying” securitisation is gaining traction and the European Commission’s flagship Capital Markets Union initiative includes the promotion of simple, transparent and standardised securitisation as a main policy objective in support of jobs, growth and the real economy.
There is still a long list of developments in progress, though, and outcomes still to come in areas such as qualifying securitisation, CRA3 and risk retention will have a significant effect on the ability of the securitisation markets to recover.
This latest publication in our New Beginnings series is designed to help you prepare to navigate your way through all of these upcoming changes and come out ahead.
eo Simon Gleeson talks about regulation and banking policy.
To download a copy of Adair and Simon’s slides, please click here.