On 26 March 2021, the three European supervisory authorities - European Banking Authority (EBA), ESMA and European Insurance and Occupational Pensions Authority (EIOPA), published Joint Questions and Answers (the “Q&A”) relating to Regulation (EU) 2017/2402 of 12 December 2017 laying down a general framework for securitisation and creating a specific framework for simple, transparent and standardised securitisation (the “Securitisation Regulation”). All the answers to questions in this Q&A fall outside of the exclusive competence of those three authorities and aim to promote common supervisory approaches and practices in the application of Securitisation Regulation.
The Q&A provides the following:
• a summary of the underlying documentation to have for the understanding of a transaction;
• required level of completeness of the information described in points (b), (c) and (d) of the first subparagraph of Article 7(1) of the Securitisation Regulation;
• guidance on underlying exposure documentation (such as facility agreements, intercreditor agreements, mezzanine debt documents, hedging documents) as part of Article 7(1)(b) of the Securitisation Regulation;
• guidance on the STS requirements - application of Article 21(9) of the Securitisation Regulation on transaction documentation;
• guidance on the provision of STS+ certification by third party verifier agent (TPV).