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As outlined in PCS’s response, this seems to us a disappointing suggestion. It is one that is difficult to reconcile with the intrinsic quality of STS securitisations on which the Commission itself and the European Parliaments and Council have worked so hard and with the desire of the European Union, through the Capital Markets’ Union project, to revitalise securitisation to fund European growth. PCS is also concerned that, as currently envisaged the proposal could damage investors and the still weak European securitisation market without a discernible commensurate regulator benefit.
However, PCS is grateful for, and heartened by, the fact that the Commission has launched this consultative process. It are therefore optimistic that, working together with the Commission and stakeholders, solutions can be found that both reinforce the prudential framework for the banking sector and the prospects for the new STS regime.