Securitisation Regulation
Regulation (EU) 2017/2402 (“Securitisation Regulation”) applies from 1 January 2019 and lays down a general framework for the regulation of in-scope securitisation activity. In doing so, it sets out certain requirements that apply to all forms of in-scope securitisation issuance, such as risk-retention, investor transparency, a ban on re-securitisation and criteria for credit granting. It also creates a specific framework for simple, transparent and standardised (‘STS’) securitisation. Due diligence requirements also apply to ‘institutional investors’ in securitisation.
S.I. No. 656 of 2018, the Central Bank of Ireland has been designated as a competent authority with regard to the Securitisation Regulation, with the exception of those competencies allocated to the Pension’s Authority under Article 29(1)(d) of the Regulation. The Central Bank is also the competent authority with respect to the authorisation and supervision of ‘third party certifiers’ established in Ireland, as set out in Article 28 of the Securitisation Regulation.
Any entity acting as an institutional investor, originator, sponsor, original lender or securitisation special purpose entity (SSPE) should be prepared to evidence the arrangements, processes and mechanisms it has in place to ensure compliance with all relevant requirements of the Securitisation Regulation.
Notification Requirement
S.I. No. 656 of 2018 imposes a notification requirement on the originator, sponsor, and securitisation special purpose entities (SSPEs) of in-scope securitisation transactions. This notification must be sent to the Central Bank no later than 15 working days after the issuance of securities.
- Supervised/Regulated Firms
The Central Bank expects that supervised firms use pre-existing channels of communication with supervisors in order to discharge this notification requirement.
SSPEs that are already subject to the Central Bank’s FVC registration regime should use this process to fulfil the notification requirement. Further details on the specific arrangements in this regard can be found in the Guidance Notes on the Central Bank’s FVC webpage.
For all other entities falling under the scope of Art. 29(4) of the Securitisation Regulation, the notification should be sent to [email protected].