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+++ News +++ SVI obtains approval for STS verification of synthetic on-balance sheet securitisations +++

 

We are pleased to announce that on 25 June 2021 BaFin approved SVI‘s application to expand its authorisation to include the STS verification of synthetic on-balance sheet securitisations.
Background
 

On 25 March 2021, the EU Parliament adopted, as part of the Capital Market Recovery Package (CMRP), the draft legislation* to introduce STS (‘simple, transparent and standardised’) also for synthetic securitisations and to facilitate NPL securitisations.

This reflects the opening of the STS segment, which was initially available only to traditional ‘true sale’ securitisations and certain types of synthetic SME securitisations, to  synthetic on-balance sheet securitisations that also involve loans to large corporates, project finance loans, residential mortgages and other asset classes, which constitute an important regulatory capital management tool for credit institutions. 
 

SVI – Impressive track record in just 30 months
 

STS Verification International GmbH (SVI) is a third party verifier authorised under Article 28 of the Securitisation Regulation** since 7 March 2019 to verify securitisation transactions for compliance with the ‘simple, transparent and standardised (STS)’ criteria. Since then, SVI has successfully verified more than 90 transactions in more than 15 countries and is currently working on an additional 20 transactions across all asset classes that are potentially eligible for STS across the EU:

Graphic_Asset_Classes.png (908×344)

 

Since early 2021 SVI has also been able to perform additional services including CRR and LCR assessments of STS compliant transactions.

 

 

STS verification for synthetic on-balance sheet securitisations with SVI
 

SVI is currently involved in numerous discussions with market participants about selected aspects of the verification process and specifics of the STS criteria for synthetic transactions.
Want to discuss your transaction?

For more information, please contact Michael Osswald


Further information:

 

* Regulation (EU) 2021/557 of 31 March 2021
** Regulation (EU) 2017/2402 of the European Parliament and of the Council of 12 December 2017 laying down a general framework for securitisation and creating a specific framework for simple, transparent and standardised securitisation, and amending Directives 2009/65/EC, 2009/138/EC and 2011/61/EU and Regulations (EC) No 1060/2009 and (EU) No 648/2012.