The Joint Committee of the European Supervisory Authorities (“ESAs“) – comprising the EBA, ESMA, and EIOPA – recently published an evaluation report assessing the functioning and effectiveness of the EU Securitisation Regulation (“SECR“). This report aims to identify areas requiring clarification or improvement to ensure better harmonisation, transparency, and stability within the securitisation markets across the EU.

The EU Securitisation Regulation, established as part of the broader capital markets union (“CMU”) initiative, seeks to foster safe and resilient securitisation markets by providing clear regulatory frameworks, robust transparency requirements, and standardized criteria for simple, transparent, and standardised (“STS“) securitisations.

Key recommendations of the report

The evaluation report highlights several essential areas for enhancement and proposes the several recommendations.

Clarification and harmonisation:

The ESAs recommend refining and clarifying key definitions and provisions within the SECR to ensure consistent interpretation and application across EU Member States. In particular, the ESAs propose a general provision to clarify the jurisdictional scope of SECR, confirming that it applies where at least one party (sell-side or buy-side) is established in the EU​.

Improved transparency requirements:

Proposals have been made to balance transparency obligations with market realities, aiming to reduce unnecessary burdens while ensuring investors receive appropriate information.

Streamlined STS framework:

The report suggests targeted amendments to the STS criteria—rather than a full overhaul—to enhance efficiency, legal clarity, and applicability, especially for on-balance-sheet synthetic securitisations. It also explores whether regulated insurance and reinsurance entities could act as eligible protection providers, under appropriate safeguards.

Strengthened supervisory convergence:

The ESAs emphasise the importance of enhancing cooperation among national competent authorities (NCAs) to achieve greater consistency in supervisory practices and enforcement of securitisation rules. They outline options ranging from maintaining the current model with improved coordination, to a more centralised EU supervisory framework​.

Scope and implications

The recommendations are relevant for a wide range of stakeholders, including credit institutions, investment firms, originators, sponsors, issuers, and institutional investors active in securitisation markets. By implementing these proposals, the ESAs aim to support market growth, enhance investor confidence, and contribute significantly to the goals of the EU’s Capital Markets Union and Savings and Investment Union.

Next steps

Following this evaluation report, further legislative or regulatory adjustments to the SECR may be anticipated. Stakeholders should remain attentive to forthcoming developments and regulatory communications from the ESAs and national competent authorities.

Conclusion

The ESAs’ report signals a proactive and measured approach to optimising the European securitisation landscape. By proposing a mix of technical clarifications, targeted simplifications, and supervisory enhancements, the report seeks to balance investor protection, market efficiency, and regulatory coherence.

Affected entities are encouraged to engage with upcoming consultations and seek tailored legal or compliance guidance as reforms progress.

For further insights on how these developments might affect your business activities, please reach out to our dedicated structured finance team.