Changes from report parliamentary committee draft to plenary report

RemovedArticle 1 – paragraph 1 – point 16 – point a, Article 30 – paragraph 1a: deleted / (deleted)

Added(-a) in paragraph 1, the second subparagraph is replaced by the following:

RemovedThis provision is not necessary since each NCA automatically receives supervisory competence over all requirements set out in the Regulation, not only those applying to originators, sponsors, SSPEs and original lenders.

Added‘For the purposes of this Article, an entity shall not be considered an originator where the entity has been established or operates for the sole purpose of securitising exposures. For entities that provide SME loans, consumer credit or residential mortgages, and that act as originators, it shall suffice to demonstrate that securitising exposures is a means to finance their business, or that of an entity belonging to the same group, which is centred on the provision of goods or non-financial services.

RemovedRegulation (EU) 2017/2402

AddedWhen an entity does not meet the criteria set out in a delegated regulation adopted pursuant to paragraph 7, the actual purpose for which the entity was established and operates shall be examined by the competent authority on a case-by-case basis to ascertain that it has real substance and that the entity is suitable to act as a retainer in a securitisation transaction.’;

RemovedArticle 1 – paragraph 1 – point 17 – introductory part, Article 32 – paragraph 1 – subparagraph 1 – point i: (17) Article 32 is amended as follows: / (a) in paragraph 1, first subparagraph, the following point is added:

Added(a) in paragraph 5 point (f) is added:

RemovedRegulation (EU) 2017/2402

Added‘(f) the Union.’

RemovedArticle 1 – paragraph 1 – point 17 – point b – point i (new), Article 32 – paragraph 2 – point f a (new): (b) paragraph 2 is amended as follows: / ‘(i) the following point is inserted: / (fa) in the case of an institutional investor, maximum administrative pecuniary sanctions of up to twice the invested amount;’

Added(b) the following paragraphs are inserted:

Removed(Regulation (EU) 2017/2402)

Added‘5a. Paragraph 1 shall not apply where the first loss tranche representing at least 15% of the nominal value of the securitised exposures for non-STS securitisations and at least 10% of the nominal value of the securitised exposures for STS securitisations, is either held or guaranteed by one of the entities listed under points (a) to (f) of paragraph 5.

RemovedRegulation (EU) 2017/2402

Added5b. This Article shall not apply to synthetic securitisations that meet all of the following conditions:

RemovedArticle 1 – paragraph 1 – point 17 – point b – point ii (new), Article 32 – paragraph 2 – subparagraph 1 a (new): (ii) the following subparagraphs are added: / ‘Point (fa) shall not apply where the competent authority has applied or is intending to apply Article 270a of Regulation (EU) 575/2013.’

Added(a) the synthetic securitisation is originated by a national promotional bank or institution as defined in Article 2, point (3), of Regulation (EU) 2015/1017;

Removed(Regulation (EU) 2017/2402)

Added(b) the first-loss tranche is guaranteed by any of the entities referred to in points (a), (b), (d), (e) and (f) of paragraph 5;

RemovedRegulation (EU) 2017/2402

Added(c) the non-guaranteed tranches are fully retained by the originator until maturity;

RemovedArticle 1 – paragraph 1 – point 17 – point b – point ii (new), Article 32 – paragraph 2 – subparagraph 1 b (new): ‘When laying down rules establishing administrative sanctions, Member States shall take into account the sanctions and additional capital requirements implemented in accordance with sectoral regulation in order to avoid duplications in the sanctioning regime for the same infringement;’

Added(d) the guarantor has established and approved the eligibility criteria for the underlying exposures prior to their creation, whereby no other party has discretion to alter or override such criteria; and

Removed(Regulation (EU) 2017/2402)

Added(e) the entity referred to in point (b) of this paragraph guarantees the first-loss tranche on a continuous basis and cannot hedge or otherwise transfer the credit risk associated with that tranche to an entity not referred in points (a), (b), (d), (e) and (f) of paragraph 5.’;

RemovedSanctions should not be duplicated when they are already covered by sectoral regulation, to avoid unnecessary overlap.

Added(ba) paragraph 7 is amended as follows:

RemovedRegulation (EU) 2017/2402

Added(i) in the first subparagraph, the following point is inserted:

RemovedArticle 1 – paragraph 1 – point 18 – point c, Article 36 – paragraph 3b: 3b. Where more than one competent authority is notified under Article 7(1), the competent authority responsible for the supervision of the originator or, if there are several originators, the competent authority supervising the originator that contributes the highest proportion of underlying exposures to the securitisation, shall be the lead supervisor for that specific securitisation. The lead supervisor shall coordinate actions and avoid divergences of application of this Regulation for transactions involving sell-side entities under the remit of competent authorities from more than one Member State. Competent authorities shall delegate the exercise of some or all of the tasks and powers referred to in this Regulation to the lead supervisor.;

Added‘(ba) the criteria to be fulfilled by an entity in order not to be considered to have been established or to operate for the sole purpose of securitising exposures, as referred to in paragraph 1, second and third subparagraphs;’;

RemovedRegulation (EU) 2017/2402

Added(ii) the second subparagraph is replaced by the following:

RemovedArticle 1 – paragraph 1 – point 19 – point a, Article 44 – subparagraph 1 – point e: (e) the contribution of securitisation to funding Union companies, especially SMEs, households and to the economy of the Union.;

Added‘The EBA shall submit those draft regulatory technical standards to the Commission by … [six months from the date of entry into force of this amending Regulation].’;

RemovedRegulation (EU) 2017/2402

Added(5) Article 7 is amended as follows:

RemovedArticle 1 – paragraph 1 – point 20a, Article 47a: (20a) the following article is inserted: / ‘Article 47a / Repeal of delegated acts / Regulatory technical standards adopted pursuant to Article 20(14), Article 24(21) and Article 26b(13) prior to … [the date of entry into force of this amending Regulation], are hereby repealed as of ... [the date of application of this amending act].’

Added(a) in paragraph 1, the introductory wording is replaced by the following: