Reform of Securitisation Markets (Regulation)

The rules on securitisation and the STS securitisation label may, in principle, increase investor confidence in the securitisation markets. The risk retention applicable to stakeholders involved in securitisation prevents conduct arising from moral hazard. However, the system of self-certification for STS securitisations involves financial risks due to the unspecific criteria for the financial stakeholders. It is therefore possible that financial stakeholders may decide not to use the STS label at all.