Within a fortnight of each other, the STS Notification RTS was published in final form and the homogeneity RTS for STS securitisations will enter into force. This alert highlights how STS securitisations will be affected.
Key Points:
..The Homogeneity RTS requirement for STS securitisations, which will enter into force on 26 November 2019, clarifies how to determine if a pool of underlying assets is sufficiently homogeneous for a securitisation to be STS-eligible.
..A minimum of one homogeneity factor must be present in respect of certain asset classes, marking a departure from earlier proposals that stipulated that all or most factors would need to be present.
..The RTS on notification requirements for STS securitisations has been published in final form, but is not expected to enter into force until February 2020.
..While there are material differences between the finalised STS notification requirements as adopted and the draft proposed by the ESMA, the STS notification templates in the related annexes remain broadly the same.
..A new double-template process for notification of private STS securitisations will ensure that commercially sensitive information remains private.
..ESMA updated its Q&A Guidance to clarify who can act as first contact point with investors and national competent authorities in respect of STS notifications.
Please see full publication below for more information.
