On April 20, 2018, the European Banking Authority released two new consultation papers dealing with the criteria for “simple, transparent and standardised” (STS) securitisations, one for asset backed commercial paper (ABCP-CP) and the other for all other STS securitisations (Non-ABCP-CP). The two consultation papers elaborate on some of the provisions contained in the European Union regulation regarding STS securitisations that was adopted on December 12, 2017 along with amendments to the prudential requirements relating to securisations for credit institutions and investment firms. They are also companion pieces to the December 15, 2017 consultation paper on draft regulatory technical standards for risk retention, which were also affected by Article 6(7) of the STS Regulation.

The ABCP-CP and the Non-ABCP-CP proceed by working sequentially through the applicable provisions of the STS Regulation, with the aim in each case of distinguishing between provisions in need of substantial clarification, those in need of only minor clarification and those that are clear enough as written. The consultation papers overlap substantially, because numerous requirements in the STS Regulation apply to all STS securitisations.