June 6, 2014 Alert - SFIG Task Force to Comment on BOE-ECB Securitization Paper
As announced in SFIG’s June 4th Newsletter, a new task force has been formed that will comment on the recent Bank of England (BOE) and European Central Bank (ECB) proposal to revitalize the securitization markets in the European Union. Additional information on this very important paper can be found below.

SFIG has engaged Clifford Chance as drafting counsel for the comment letter, which must be submitted by July 4th. A summary of the proposal prepared by Clifford Chance can be found here.

In light of the upcoming deadline, the task force will begin meeting next week, with its first call scheduled for Tuesday, June 10, 2014 at 11 a.m. EST (5 p.m. CEST for our members dialing in from Barcelona). To register your interest in the BOE-ECB securitization initiative and receive dial-in information for that call, please contact Amanda.Bateman@sfindustry.org.

The Bank of England (BoE) and the European Banking Authority (EBA) recently published a joint discussion paper on securitization, which proposes a set of principles pursuant to which securitization transactions that generally are deemed to be "simple and transparent to investors" would be classified as "qualifying securitizations" and would receive various regulatory preferences. This paper notes the many benefits of securitization and attempts to identify current impediments to realizing these benefits. It ultimately suggests a variety of reform options that relevant EU authorities could support to remove these impediments and revitalize the European securitization market for qualifying securitizations.

While this paper is aimed at improving European securitization markets, the implementation of the proposed concepts will likely also impact global securitization markets and the thinking of key regulators in the rest of the world. Accordingly, it is important to identify issues that may affect the interests of U.S. investors and issuers at an early stage and to advocate for exemptions or alternative approaches that will support the effective functioning of global, cross-border securitization markets.
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