One of the main measures looks to revive the securitisation market, which still suffers to be associated to the image of the 2008 crash, after the fact that subprimes were linked to the reckless practices in the US mortage market.
Sir Hill plans to lift political obstacles to the liberalisation of the securitisation regime, including in reducing the 5 per cent of the securitised assets originators are required to retain.
He also wants to create a new class of securitisation which would use only high quality, simple and transparent loans. This quality label aims to ease the capital requirements. It will be based on the development of securitisation standard certifying the process for parcelling up the loans, and on the adjustments on technical rules (administrative and legal liability lightering). Thus, the securitisation quality label would allow reducing some requirements of disclosure and due diligence.
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Links:
>> Securitisation Funds in Luxembourg
>> Three processes to subscribe in securities
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