The changes are made by way of a Regulation ((EU) 2019/1156) and a Directive ((EU) 2019/1160)) and are commonly referred to as the CBDF framework – which forms part of the EU’s capital markets union initiative. (See 'Capital Markets Union Action Plan' below).

The changes introduce a definition of and conditions for pre-marketing of EU AIFs by EU AIFMs. National private placement regimes continue to apply to marketing by non-EU AIFMs and the new pre-marketing rules will not apply to non-EU AIFMs, subject to any “gold plating” measures introduced by individual jurisdictions. Germany, Luxembourg and the Netherlands have so far introduced measures extending the new rules to apply to non-EU AIFMs pre-marketing AIFs in those jurisdictions (see our OnPoint New Pre-Marketing Rules for AIFs in Germany). These measures have been introduced on the basis that Directive ((EU) 2019/1160 states “National laws, regulations and administrative provisions necessary to comply with Directive 2011/61/EU [AIFMD} and, in particular, with harmonised rules on pre-marketing, should not in any way disadvantage EU AIFMs vis-à-vis non-EU AIFMs.” We continue to monitor whether other EU jurisdictions will also extend the new rules to apply to non-EU AIFMs. Conditions and de-notification requirements will also apply when marketing of an AIF / UCITS by an EU AIFM or ManCo ceases in a particular EU member state.

All AIFMs will have to establish certain local facilities when marketing to retail investors. The facilities will not however need to be a physical presence in a country and may be run by a third party.

Since 2 August 2021, marketing materials for AIFs and UCITS must be identifiable as such and must describe the potential risks and rewards of purchasing units or shares in UCITS/AIFs in an equally prominent manner and all information included in marketing communications must be fair, clear and not misleading.

ESMA guidelines¹ for funds' marketing communications under Article 4 of the Regulation were published on 2 August 2021 and will apply from 2 February 2022. The purpose of the guidelines is to specify the requirements for marketing communications sent to investors to promote UCITS and AIFs (including EuSEFs, EuVECAs and ELTIFs). By 2 February 2022, ESMA is also to develop draft implementing technical standards with standard forms, templates and procedures under the CBDF framework, having issued a consultation paper on the standards in March 2020.

The EU Commission was due to report on reverse solicitation under the CBDF framework by 2 August 2021 but at the time of writing has not done so. The expectation is that it will do so before the end of 2021.

Further AIFMD developments

EU Commission review of AIFMD: The EU Commission's wide-ranging consultation on the review of the application and scope of AIFMD launched in October 2020 and closed to comments in January 2021. The consultation aimed to examine how to strengthen the rules and complete the internal market for AIFs. The EU Commission is expected to adopt a legislative proposal amending AIFMD and/or other parts of the AIFMD framework in October 2021, which could also lead to further harmonising amendments to the UCITS rules. Industry comments on the consultation were that substantial changes are not required to the AIFMD itself and any amendments should instead be made to the AIFMD framework legislation / guidance.

In December 2020 a speech by ESMA’s executive director in the context of the AIFMD review, focused in particular on delegation under AIFMD. ESMA’s view is that all AIFs should be subject to consistent regulatory standards regardless of status or location of the delegates, especially with delegation to non-EU entities that may be subject to different regulatory standards.

On 17 March 2021, the French financial services regulatory authority, the Autorité des Marchés Financiers (AMF) published a set of recommendations to change the AIFMD and UCITS regime as part of an ongoing review of AIFMD.² The recommendations include proposals regarding the use of the management passport, delegation, reporting and liquidity management tools, as well as consistency between the AIFMD, UCITS and MIFID directives. In relation to delegation, the AMF – while acknowledging the benefits of delegation – believes certain delegation models should be further scrutinized to ensure AIFMs and UCITS managers remain ultimately in charge of key business functions and decisions.

Delegation is likely to be a hot topic following the end of the Brexit transition period and now that UK investment managers are non-EU entities under AIFMD.

Leverage risk: ESMA guidelines to address leverage risk started to apply from 23 August 2021. This followed an ESMA consultation paper issued in March 2020 on how the leverage-related systemic risk assessment should be conducted and when leverage limits might be imposed and publication of the guidelines in ESMA’s final report in December 2020. The guidelines follow IOSCO’s two step approach and include a set of indicators for National Competent Authorities to consider when performing their risk assessment plus a set of principles for them to take into account when setting leverage limits. EU National Competent Authorities must now incorporate the guidelines into their national legal frameworks.

ESG: Delegated legislation integrating sustainability into AIFMD (and the UCITS Directive) will apply from 1 August 2022 (see Section 1 ESG for details).

Capital Markets Union Action Plan

The EU Commission published its second action plan on the Capital Markets Union in September 2020. The action plan includes 16 initiatives grouped under three objectives that the EU Commission is working on an ongoing basis:

• Supporting a green, inclusive and resilient economic recovery by making financing more accessible to European companies
• Making the EU a safer place for individuals to save and invest long-term
• Integrating national capital markets into a genuine single market

As part of this ongoing initiative to strengthen EU capital markets, in December 2020 the Council of the EU approved prioritising those actions that are important for improving the funding of the economy and SMEs in particular and that have the potential to support a swift economic recovery in the context of the COVID-19 pandemic. These should be delivered by the EU Commission no later than the end of 2021.

CSDR

The new settlement discipline regime (SDR) requirements under the Central Securities Depositories Regulation (CSDR) were delayed to 1 February 2022 due to the disruption caused by the COVID-19 pandemic. The UK government announced in June 2020 that it would not be implementing the CSDR settlement discipline regime in the same form in the UK following Brexit.

As February 2022 approaches focus remains on the CSDR SDR. The SDR introduces a range of measures to prevent and address settlement failures at central security depositories (CSDs) operating securities settlement systems across the EU, such as Euroclear and Clearstream, and is agnostic as to the location of the relevant counterparties to the trade if the trade settles at a relevant CSD. The SDR measures include rules for trade allocation and confirmation processing, cash penalties for failed transactions and mandatory buy-in (MBI) requirements. It is the new MBI regime that has received most focus and the MBI regime has been subject to widespread calls for clarification, amendment and delay. Although at the time of writing the timing remains unchanged, the market’s expectation is that implementation of the MBI regime will be postponed.

In July 2021, the EU Commission published its report on its review of CSDR and its implementation, which included a short section on the SDR. The EU Commission’s webpage indicates that (subject to an impact assessment) it is considering proposing legislation aimed at ensuring an effective post-trading infrastructure, enhancing competition among CSDs and strengthening cross-border investment, in line with the Capital Markets Union Action Plan. July 2021 also saw publication of another joint industry association letter relating to the SDR calling for urgent action from ESMA and the EU Commission regarding its implementation.³

ELTIF Reform

The EU Commission launched a consultation on the review of the European Long-term Invest Fund (ELTIF) Regulation in October 2020. The consultation closed for comments in February 2021 and sought views on:

• the scope of the ELTIF authorisation and process
• investment universe, eligible assets and qualifying portfolio undertakings
• borrowing of cash and leverage
• conflict of interest and co-investment
• rules on portfolio composition and diversification

On 3 February 2021, ESMA published its letter⁴ to the EU Commission setting out areas where ESMA considers the ELTIF Regulation could be improved and its proposed changes to the regulation.

The EU Commission is expected to adopt a report on its review of the ELTIF Regulation in October 2021, which also forms part of its work under the Capital Markets Union Action Plan. The review is expected to focus on the redemption policy and lifespan of ELTIFs, the extent to which ELTIFs are marketed in the EU, investment limitations for retail investors and whether the list of eligible assets and investments, diversification rules, portfolio composition and limits on cash borrowing should be amended.

Proposals to reform the ELTIF structure are gaining industry support, to make it more attractive to professional investors and as a way of engaging retail investors in long term investments for the economic recovery from the COVID-19 pandemic.

EU EMIR

Regulatory reporting. Focus remains on EMIR reporting and standards of reporting. The December 2020 ESMA final report on new draft implementing technical standards (ITS) for reporting under the European Markets and Infrastructure Regulation (EMIR) remains under consideration by the EU Commission. The report includes the proposal that an 18 month implementation period should apply. This report followed a consultation earlier in 2020 on Technical Standards on reporting, data quality, data access and registration of trade repositories pursuant to EMIR, as amended by the EMIR Refit Regulation and the reporting responsibility changes introduced by the EMIR Refit Regulation that took effect on 18 June 2020.

On 13 July 2021 ESMA issued a consultation paper including draft guidelines on a wide range of topics related to reporting, data quality and data access under EMIR Refit and to the new draft ITS referenced above, which is open for comments until 30 September 2021. ESMA plans to finalise the guidelines and issue a final report in Q4 2021 or Q1 2022, subject to the adoption of the draft regulatory technical standards (RTS) and ITS on reporting by the EU Commission. On 3 September 2021 ESMA announced that it will hold an open hearing on 20 September 2021 in relation to the reporting guidelines.

On 9 July 2021 ESMA issued a consultation paper, including draft RTS, to revise clearing and derivative trading obligations in view of the benchmark transition away from LIBOR and EONIA and on to new risk-free rates. The consultation was open for comments until 2 September 2021 and ESMA plans to finalise the draft RTS in Autumn 2021, then submit them to the EU Commission for endorsement.

Initial margin. Phase 5 of the EMIR regulatory initial margin requirements for entities whose aggregate average aggregate notional amount, so called “AANA” by reference to March, April and May 2021 exceeded EUR 50bn took effect on 1 September 2021. Phase 6 will follow on 1 September 2022 and the relevant AANA threshold for the final phase is EUR 8bn.

General: On 29 May 2021, ESMA published a revised version of its EMIR Q&A paper. Updates to the same Q&A in December 2020 clarified the status of derivatives executed on UK markets following the end of the Brexit transition period, when the UK became a “third country.”

Supervisory measures and penalties In April 2021, ESMA published its first data quality report, highlighting ESMA supervisory activities relating to the quality of data reported to trade repositories under EMIR and also the SFTR.

In July 2021, ESMA published its annual report⁵ on the penalties imposed by competent authorities relating to the key EMIR obligations, including supervisory measures, fines and periodic penalty payments, to the European Parliament, the Council and the EU Commission. The report highlights among other aspects, an increase in the use of EMIR data for supervisory purposes, greater clarity on which counterparties are subject to the clearing obligation as a result of the expanded clearing threshold notification mechanism introduced under EMIR Refit, and some challenges in looking at group activities. The report also includes reference to enforcement cases, which resulted in the imposition of sanctions in France, Italy, Liechtenstein and Luxembourg for breaches related to the reporting obligation. France also issued a penalty related to the risk mitigation techniques.

EMIR in the UK

By way of reminder, the UK ‘on-shored’ EMIR by way of a series of statutory instruments and binding technical standards, meaning that the UK now has its own version of EMIR (the UK EMIR). (See 'UK EMIR' below). Ahead of the on-shoring ESMA issued a Public Statement on issues affecting EMIR and SFTR reporting.

MiFID II “quick fix” amendments

“Quick fix” updates to MiFID II and changes to the research unbundling requirements came into force on 27 February 2021, as part of the EU’s ongoing review of the regime and a capital markets recovery package for the COVID-19 pandemic. EU member states must transpose the changes into national law by 28 November 2021 and apply them by 28 February 2022.

The changes include:

• simplifying certain information requirements, including phasing out paper based default methods of communication, introducing an exemption from the costs and charges information for eligible counterparties and professional clients for services other than investment advice or portfolio management, and suspending best execution reports
• amending the scope of position limits in commodities markets so that they only apply to agricultural commodity derivatives and significant or critical commodity derivatives. On 19 March 2021 ESMA issued a further statement confirming that although the position limit changes start applying in 2022, the upcoming changes should be taken into account before then. ESMA therefore expects national competent authorities not to prioritise supervisory action against entities holding positions that will be out of scope once the changes apply
• a new narrow hedging exemption for financial entities from the position limits regime
• 10% portfolio loss reports will no longer be mandatory for professional clients, and
• an optional exemption from the current research unbundling requirement if execution services and the provision of research relate to small and mid-cap issuers or fixed income instruments.

Under the MiFID “quick fix” Directive, the EU Commission was also required to carry out a further public consultation and review of various parts of the MiFID regime and report by 31 July 2021, in addition to its ongoing review of MiFID II, although the report has not yet been published. Legislative proposals for further changes to the MiFID regime are expected in late 2021.

The UK has also introduced changes to UK MiFID similar to the “quick fix” Directive, most of which are effective from 26 July 2021. (See 'UK MiFID' below for details.)

CRR amendments relating to securitisation

In April 2021, Regulation (EU) 2021/558 was published in the OJ implementing amendments to the Capital Requirements Regulation (CRR) to adjust the securitisation framework. This may impact investment managers and their funds indirectly. The amendments aim to make securitisation more viable for institutions by:

• extending the existing EU framework for simple, transparent and standardised (STS) securitisations to cover on-balance-sheet synthetic securitisations and, to encourage the use of STS securitisations, preferential risk weights will be introduced for senior tranches retained by the originator
• removing the current regulatory constraints to the securitisation of non-performing exposures, and
• setting out a dedicated prudential treatment of synthetic excess spread (SES) to prevent SES being used for regulatory arbitrage purposes.
• The regulation applies from 9 April 2021, except for provisions relating to SES, which apply from 10 April 2022.

IFR and IFD

From 26 June 2021 the Investment Firm Regulation started to apply, and EU Member States were expected to apply legislation and regulation implementing the Investment Firms Directive from that date.

Previously, investment firms that were authorised under the MiFID II Directive were subject to prudential requirements set out in the CRR and the CRD IV Directive. The Investment Firms Regulation ((EU 2019/2033) (IFR) and the Investment Firms Directive ((EU) 2019/2034) (IFD) establish a new prudential framework for these firms:

• Certain systemically important firms are reclassified as credit institutions and subject to prudential requirements set out in the Capital Requirements Regulation (CRR) and the Capital Requirements Directive IV (CRD IV). These firms are not subject to the new prudential framework that applies to other investment firms under the IFR and the IFD. If these firms are established in member states participating in the banking union, they will come within the scope of the single supervisory mechanism.
• All other investment firms are subject to a new prudential framework, replacing the requirements set out in the CRR and the CRD IV. Small and non-interconnected investment firms are subject to limited prudential requirements.
• "K-factors" are used in the classification of investment firms and in the new capital requirements methodology for investment firms. K-factors are quantitative indicators intended to represent the risks that an investment firm can pose to customers, to market access or liquidity, and to the firm itself.
• Investment firms are subject to revised remuneration and governance standards, set out in the IFD.

The aim of the IFR is to establish an effective and proportionate prudential framework to ensure that investment firms that are authorised to operate within the EU operate on a sound financial basis and ensure harmonised prudential supervision of investment firms across the EU. The new framework forms part of the EU Commission's work to establish the Capital Markets Union. The EBA is also due to finalise draft regulatory technical standards for the IFR and IFD during 2021.

The UK intends to introduce a revised prudential regime for FCA-authorised investment firms, the Investment Firms Prudential Regime (IFPR), on 1 January 2022 (see 'UK prudential regime for investment firms (IFPR)' below).

EU Short selling position reporting

ESMA’s intervention, which temporarily lowered the threshold for regulatory reporting of a net short position in shares traded on an EU regulated market to 0.1% from 0.2% during the COVID-19 pandemic, expired on 19 March 2021 and was not extended. In July 2021 the EU Commission published a draft delegated regulation for consultation that would adjust the threshold permanently from 0.2% to 0.1% (and each 0.1% above that), following ESMA’s recommendation to make this change in May 2021. Comments could be made on the draft delegated regulation until 12 August 2021 and, if adopted, the regulation will come into force 20 days after publication in the OJ.

Following the end of the Brexit transition period, the UK has introduced its own regime for short selling position reporting (see 'UK Short Selling Regulations 24' for details).

EU Commission review of AML regime

The EU Commission adopted a package of legislative proposals on 20 July 2021 to strengthen and modernise the European AML and CTF laws. The proposals include establishing a new EU AML and CTF single rulebook with rules that are directly applicable across the EU and a new EU-level AML and CTF authority co-ordinating all national AML and CTF supervisors. The European Parliament and Council of the EU are considering the EU Commission’s proposals, with the EU Commission aiming to adopt legislative proposals in 2022 and bring the new regime into force in 2025. The EU Commission launched a consultation on the draft legislative proposals, which is open for comments until 27 October 2021.

EU Benchmarks Regulation

On 24 March 2021, ESMA published an updated statement⁶ (dated 9 March 2021) on the application of key provisions in the Benchmarks Regulation (EU BMR) in the light of Brexit.

The update specifies the EU's regulatory approach towards UK-based third-country benchmarks as well as UK-endorsed and recognised benchmarks.

Following the end of the Brexit transition period, UK-based administrators that were initially included in the ESMA register of administrators were deleted as the EU BMR no longer applies to UK based benchmark administrators; rather they qualify as third-country administrators.

The EU BMR provides for a transitional period, as defined in Article 51(5)4 of the EU BMR, and this has been extended to 31 December 2023. The change in the ESMA register does not yet have an effect on the ability of EU27 supervised entities to use the benchmarks provided by any third country administrators, including UK ones. During the BMR transitional period (i.e. until 31 December 2023), third country benchmarks, including UK based benchmarks, can still be used by supervised entities in the EU if the benchmark is already used as a reference for financial instruments, financial contracts, or for measuring the performance of an investment fund.

In the absence of the EU Commission granting an equivalence decision (which is unlikely), UK-based benchmark administrators have until 31 December 2023 to apply for recognition or endorsement in the EU. Recognising or endorsing a benchmark provided by UK-based administrators would see that benchmark included in the ESMA register again.

The extended EU BMR transitional period also applies to UK-recognised or endorsed third-country benchmarks that were included in the ESMA register before the end of the Brexit transition period following a recognition or an endorsement status granted by the UK.

Shortly following the ESMA 24 March 2021 statement, ESMA issued a new EU BMR Q&A that modified the question relating to transitional provisions applicable to third country benchmarks to reflect the extension above.

EU SFTR

The Securities Financing and Transaction Regulation (SFTR) reporting requirements went live in July 2020 and commenced in October 2020 for financial counterparties including UCITS, AIFs and in-scope third country entities not caught by the first phase in July 2020. On 11 January 2021, the SFTR reporting obligation commenced for non-financial counterparties. In early 2021, ESMA published certain materials in relation to SFTR, issuing updated Guidelines on Reporting under Articles 4 and 12 of SFTR.

In May 2021, ESMA published:

• guidelines on the calculation of positions by trade repositories, which will start to apply from 31 January 2022.
• Q&As on SFTR data requirements designed to provide greater clarity to market participants on how to comply with their reporting requirements under the SFTR, and
• a consultation paper on guidelines for the transfer of data between trade repositories under EMIR and the SFTR. This consultation closed in August 2021 and ESMA plans to publish the final guidelines by the end of 2021.

Specifically for Luxembourg domiciled UCITS, in December 2020 the Luxembourg financial services regulator, the CSSF, published Frequently Asked Questions⁷ (FAQ) in relation to the use by Luxembourg domiciled UCITS of securities lending transactions, reverse repurchase agreement transactions (reverse repo) and repurchase agreement transactions (repo), buy-sell back and sell-buy back transactions, as well as total return swaps (for so long as these are used for investment purposes, not Efficient Portfolio Management techniques). The FAQ cover disclosure to investors, revenues and costs and fees, conflicts of interest and best execution. The attention of the following entities is also expressly drawn to the FAQ by the CSSF to consider and comply with the FAQs where relevant: (i) Luxembourg authorised AIFMs, (ii) non-Luxembourg AIFMs in respect of the Luxembourg domiciled AIFs they manage, (iii) regulated Luxembourg funds (Part II and SIF) whether they qualify as AIFs or not, including those managed by registered AIFMs. It is generally expected these entities should make any relevant disclosure updates.

Importantly the FAQ state that the CSSF expects the funds and/or their managers to perform the relevant detailed gap analysis and, if necessary, update relevant disclosures by 30 September 2021 at the latest.

The UK and SFTR: SFTR was also on-shored by the UK under the European Union (Withdrawal) Act 2018, so, similarly to EMIR, the UK now has its own version of SFTR, so called UK SFTR. (See 'UK SFTR' below). Ahead of the on-shoring ESMA issued a Public Statement with respect to the issues affecting EMIR and SFTR reporting.

Our previous client notes on the scope of SFTR can be found here and here.

EU PRIIPs Regulation

The PRIIPs Regulation entered into force on 29 December 2014 and its requirements became applicable in EU member states on 1 January 2018. The PRIIPs Regulation was originally intended to apply from 31 December 2016 but, in December 2016, the European Parliament and Council decided to delay implementation, largely due to the European Parliament's rejection, in September 2016, of the EU Commission's regulatory technical standards (RTS) on the presentation, content, review and revision of the key information document (KID). The KID is the key concept introduced by the PRIIPs Regulation and is a pre-contractual disclosure document, prepared for retail consumers when they are considering buying a wide range of investment products that are referred to as PRIIPs.

The PRIIPs Regulation also provides that UCITS ManCo and investment companies, and those advising on or selling units of UCITS, are exempt from the obligations under the PRIIPs Regulation originally until 31 December 2019, but later extended to 31 December 2021 (meaning that these entities only needed to produce the UCITS KIID). A further extension to 30 June 2022 is currently under consideration by the EU Commission (see below).

The PRIIPs Regulation stipulates that the EU Commission must review it by 31 December 2019 (delayed by a year like the original implementation). However, at the time of writing, the review has not been completed. In a letter to EIOPA in February 2021,⁸ it appears that the EU Commission’s current plan is to review the PRIIPs Regulation as part of a wider holistic assessment of the different rules in terms of disclosure and distribution to retail investors as part of the Capital Markets Union Action Plan (see Section 'Capital Markets Union Action Plan' above) and the EU Commission’s Retail Investment Strategy, which the EU Commission aims to complete by Q1 2022.

Amongst other things, the review will look at (i) how to achieve better alignment between PRIIPs, the insurance distribution directive (IDD) and MiFID II regarding provisions on costs disclosure; (ii) the scope of products as foreseen by the PRIIPs Regulation; and (iii) how to ensure that the KID contains the key information necessary for retail investors, while avoiding too much or too complex information for these investors.

PRIIPs KID Delegated Regulation

The ESAs published a consultation paper⁹ in October 2019 proposing a set of substantive amendments to the PRIIPs KID Delegated Regulation and in June 2020 the ESAs published a draft report that included draft RTS.¹⁰

In February 2021, the ESAs all published identical press releases¹¹ confirming that the draft RTS had been adopted by all three Boards of Supervisors and submitted to the EU Commission for endorsement.

On 7 September 2021, the EU Commission adopted a Delegated Regulation together with Annexes amending the regulatory technical standards (RTS) laid down in Commission Delegated Regulation 2017/653 relating to PRIIPS KIDs. The Delegated Regulation sets out:

• new methodologies underpinning the calculation of appropriate performance scenarios and a revised presentation of these scenarios, as well as standards for information on past performance that needs to be provided by some investment funds,
• revised summary cost indicators and changes to the content and presentation of information on the costs of PRIIPs,
• a modified methodology underpinning the calculation of transaction costs, and
• modified rules for PRIIPs that offer a range of options for investment.

The provisions are scheduled to apply from 1 July 2022, meaning that their application will coincide with targeted “quick-fix” amendments of the PRIIPs Regulation and the UCITS Directive, which will end the obligation for retail investment funds to publish UCITS KIIDs as of 1 July 2022, to avoid duplicate pre-contractual disclosures.

With regards to the issue of the co-existence of the UCITS KIID and PRIIPs KID, the ESAs recommended in their final report that steps are taken to avoid such coexistence. Following the final report, the EU Commission adopted a legislative proposal in July 2021 for a “quick fix” to amend the UCITS Directive (2009/65/EC), to avoid duplicative pre-contractual arrangement requirements between the PRIIPS and UCITS Directives. Under this proposal, where an investment company or a management company, draws up, provides, revises and translates a KID that complies with the PRIIPs Regulation requirements, it would be considered as satisfying the UCITS Directive requirements for KIIDs, i.e. UCITS managers would no longer have to provide a UCITS KIID to retail investors. EU member states would need to adopt measures to comply with these changes by 30 June 2022 and apply them from 1 July 2022.

Feedback on both legislative proposals was sought until 9 September 2021 and, if adopted, the amending legislation will enter into force the day after its publication in the Official Journal.

EU Securitisation Regulation

Pursuant to Article 46 of the Securitisation Regulation, the EU Commission is subject to a legal obligation to submit a report on the functioning of the Securitisation Regulation to the European Parliament and to the Council by 1 January 2022. Article 46 lists a number of topics that are to be covered in the report, namely:

• the effects of the regulation
• private securitisations
• the need for an equivalence regime in the area of simple, transparent and standardised (STS) securitisations
• disclosure of information on environmental performance and sustainability
• the need for establishing a system of limited licensed banks performing the functions of securitisation special purpose entities (SSPEs) – securitisation special purpose entities
• treatment of STS securitisations and asset-backed commercial papers (ABCPs) for the liquidity coverage ratio, and
• amendments to the CRR to simplify and improve the current significant risk transfer test.

The EU Commission is inviting responses by 17 September 2021.

Footnotes

1. The English language version of the ESMA Guidelines.
2. The AMF’s 17 March 2021 recommendations.
3. The 14 July 2021 joint industry association letter.
4. The letter from ESMA relating to the review of ELTIF.
5. The annual report.
6. The statement can be viewed here.
7. The FAQ.
8. The letter from the EU Commission to EIOPA.
9. The Consultation Paper (JC 2019 63).
10. The final draft report.
11. The EBA press release.