Member States shall ensure investor protection by providing for a EU sufficient level of There is considerable debate in Directive A lack of clarity on the degree of homogeneity homogeneity of the assets in the cover pool so that they shall be securitisation over similar requirements in Moderate tbc Article 10 of assets of a similar nature in terms of the STS requirements structural features, lifetime of assets or risk profile. Under segregated structures the SPV auditors A pool monitor shall be separate and independent from the Directive and issuers auditors may be different but not Will be costlier to have different firms credit institution Low tbc Article 13 clear if the SPV auditor can also be Cover Pool performing two roles issuing covered bonds and from that credit institution's auditor. monitor By XX [OP: please insert the date laid down in the second subparagraph of Article 32(1) of this Directive + 3 years], the Commission shall, in close cooperation with EBA, submit a report The lengthy period to an assessment of third UK to the European Parliament and to the Council whether an country regimes will lead to a period of Clarity of the status of UK covered bonds Directive equivalence regime could be introduced for third-country credit uncertainty regarding the status of would be very helpful to investors based High tbc Article 31 institutions issuing covered bonds and for investors in covered Covered bonds in its interaction with the in the EU bonds, taking into consideration international developments in Brexit timetable and transitional rules. the area of covered bonds, in particular the development of legislative frameworks in third countries
EU Directive Article 10 Member States shall ensure investor protection by providing for a sufficient level of homogeneity of the assets in the cover pool so that they shall be of a similar nature in terms of structural features, lifetime of assets or risk profile. A lack of clarity on the degree of homogeneity of assets There is considerable debate in securitisation over similar requirements in the STS requirements Moderate tbc Directive Article 13 A pool monitor shall be separate and independent from the credit institution issuing covered bonds and from that credit institution's auditor. Under segregated structures the SPV auditors and issuers auditors may be different but not clear if the SPV auditor can also be Cover Pool monitor Will be costlier to have different firms performing two roles Low tbc Directive Article 31 By XX [OP: please insert the date laid down in the second subparagraph of Article 32(1) of this Directive + 3 years], the Commission shall, in close cooperation with EBA, submit a report to the European Parliament and to the Council whether an equivalence regime could be introduced for third-country credit institutions issuing covered bonds and for investors in covered bonds, taking into consideration international developments in the area of covered bonds, in particular the development of legislative frameworks in third countries The lengthy period to an assessment of third country regimes will lead to a period of uncertainty regarding the status of UK Covered bonds in its interaction with the Brexit timetable and transitional rules. Clarity of the status of UK covered bonds would be very helpful to investors based in the EU High tbc
ECBC-Feedback-mapping-on-CB-legislative-package-17May-2018.docx