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As part of the capital markets union action plan, the Commission proposed 2 legislative measures to promote a safe and liquid market for securitisation. These are:

• a regulation on securitisation that will apply to all securitisation products and include due diligence, risk retention and transparency rules together with a clear set of criteria to identify simple, transparent and standardised (STS) securitisations

• an amendment to the regulation on capital requirements to make the capital treatment of securitisations for banks and investment firms more risk-sensitive and able to properly reflect the specific features of STS securitisations

These proposals aim to re-establish a safe securitisation market in Europe by differentiating simple, transparent and standardised securitisation products from more opaque and complex ones.