Securitisations Corona Quick Fix (cepPolicyBrief)
In response to the economic shock caused by COVID-19, the EU Commission presented a "recovery package for the capital markets" in the summer, which is currently being discussed by the European Parliament. In three analyses the Centre for European Policy has evaluated the Markets in Financial Instruments Directive (MiFID II), the Prospectus Directive and the Securitisation and Capital Adequacy Directive.
From the Centre for European Policy's point of view, there are light and shadow in the assessment of the package to recover the capital markets. The adjustments to the MiFID II Directive, which reduce the administrative burden on investment firms without jeopardising investor protection, are positive. On the other hand the relaxation of the prospectus requirements is not positive, as the need for information on issuers of securities has not automatically decreased during the COVID 19 pandemic. They jeopardise investor protection.
Prudential relief for the securitisation of non-performing loans is acceptable. This also applies to the preferential treatment for on-balance sheet synthetic securitisations.