01 July 2008

Finance industry consults on Good Practice Guidelines

The paper sets out proposed guidance for the implementation of the securitisation disclosure requirements in the CRD and are part of the 'Ten Industry Initiatives' to increase transparency in the European securitisation markets.

The Good Practice Guidelines focus on promoting sound, consistent and appropriately granular implementation of the CRD disclosure requirements relating to securitisation.

 

The Guidelines are reflecting the results of an Industry Survey of Market Participants, who provide short term liquidity, to identify their informational needs in relation to securitisation, a Comparative Analysis of CRD Implementation in EU Member States and implementation issues identified by firms.

 

The Guidelines are expected to be noteworthy input for the Basel Committee on Banking Supervision’s in its mandate to issue further guidance to strengthen disclosure requirements under Pillar 3 by 2009 as reflected in the recent FSF report.

 

They are part of the “Ten Industry Initiatives” to increase transparency in the European securitisation markets.

 

The ten initiatives include – next to the Draft Industry Good Practice Guidelines - the creation of a new industry Quarterly Securitisation Data Report, which provides comprehensive, frequent and relevant statistical data on EU and US securitisation markets. The eight additional initiatives include:

• a finalised ABCP Issuer Disclosure Code of Conduct;
• development of draft RMBS and CMBS Issuer Transparency and Disclosure Principles;
• measures to enable further opening of access to transaction information;
• development of Industry Data Portals to create centralised access to prospectuses and investor reports;
• a new ESF RMBS and CDO Issuer/Manager website directory;
• establishment of globally coordinated task forces to improve standardisation and granularity of RMBS and CMBS reporting templates;
• development of standardised definitions to enhance comparability of terms in a global investor marketplace;
• development of investor principles for credit assessment and valuations.

 

The consultation paper sets out proposed guidance to practitioners for the implementation of the securitisation disclosure requirements in the Capital Requirements Directive. The industry working group will produce feedback and finalise the guidelines by 31 October 2008.

 

Deadline for consultation is 15 September 2008.

 

Press release

Executive Summary of the Ten Industry Initiatives

 

Documents relating to the initiative on Increasing Transparency in the Reporting of
Securitisation Exposures under the Capital Requirements Directive Pillar 3

Letter to EU Commissioner McCreevy

Industry Consultation Paper on Industry Good Practice Guidelines on Pillar 3 Disclosure Requirements for Securitisation 

Pillar 3 Disclosure Questionnaire and Survey Results

Comparative analysis of the Transposition of CRD Pillar 3 Requirements in the Area of Securitisation 

 

Documents relating to the initiative on Increasing Transparency in Securitization
Market Activity - New Securitisation Data Report

Letter to EU Commissioner McCreevy 

ESF Securitisation Data Report – Q1:2008 

Documents relating to Issuer and Investor Transparency Initiatives

Letter to EU Commissioner McCreevy 

Issuer and Investor Transparency Initiatives

containing:

a)     Code of Conduct on Disclosure in the ABCP Market, Final Version June 2008

b)     Legal Considerations on Disclosure in ABCP Transactions

c)     Review of the EU ABCP Market, Structures, Reporting Practices and Investor Considerations

d)     Recommendations of Investor Working Group on Pre- and Post-Issuance Disclosure
for EU RMBS and ABS

e)     Progress Report on Term RMBS and ABS Issuer/Manager Disclosure and
Transparency Principles

f)       Progress Report on CMBS Issuer Disclosure and Transparency Principles

g)     Directory of Links to EU RMBS Issuer Websites

h)     Directory of Links to EU CDO Collateral Manager Websites

i)        Legal Survey of Term Securitisation Public Disclosure Practices for Various Asset
Classes in Europe, by Clifford Chance

j)       Term Securitisation Disclosure Practices - Business Survey Snapshot of Public
Reporting and Credit Disclosure in EU Structured Finance, By Deutsche Bank

k)      Term Credit Card Disclosure Practices - Business Survey of Reporting Standards in
EU Credit Card ABS Transactions, by RBS

l)        Term Securitisation Summary of Legal Considerations on Disclosure

m)    Questionnaire for Development of Standardised Definitions for RMBS

n)     Questionnaires for Development of Standardised Definitions for CMBS

o)     Progress Report on Investment Industry Principles for Structured Credit Assessment
and Credit Valuations

Summary of European Industry Commitments to the European Commission Regarding Transparency in the European securitization Market