By Johann Champain, Head of Business Development, Debt and Securitisation, France
The European Commission’s latest reform package reduces reporting requirements, simplifies due diligence, and shifts parts of the framework from “box-ticking” to principle-based assessments. For issuers and originators, these reforms mean less friction in day-to-day operations and a more accessible securitisation market across Europe.
Why reporting is at the heart of securitisation reform
Securitisation has a longstanding reputation for complexity. Prescriptive rules have weighed heavily on EU issuers since the 2008 financial crisis, from exhaustive templates to strict data submission requirements. While the initial goal was to protect investors, the resulting regulatory maze has created a market that can feel inaccessible.
The recent reforms aim to change that. While the European Commission has been clear that this isn’t a “silver bullet” for EU financing needs, they tackle one of the biggest operational pain points: reporting. For originators, the new approach means more manageable disclosures, opening the market to institutional investors outside the traditional banking monopoly.
In this article, we’ll break down the key operational changes of the reforms and explore their impact on securitisation originators.
Simpler securitisation reporting
Templates trimmed by ~35%
The most tangible change is the significant reduction in mandatory reporting fields; roughly one third of required data entry will disappear. The remaining fields will be those most relevant to investors and supervisors, making reporting more efficient and meaningful.
Expected impact:
- Less duplication across systems and service providers
- Leaner reporting that’s easier to compile and distribute
- Faster onboarding for first-time issuers or smaller players who don’t have extensive data infrastructure
Aggregate vs loan-by-loan reporting
Another important adjustment is the ability to report aggregate-level data rather than reporting data loan by loan. This is especially relevant for large portfolios, where transaction-level reporting was burdensome.
Expected impact:
- Lower operational load when building and scrubbing data tapes
- Smaller file sizes and fewer late-stage reconciliations
Public and private deals
For public securitisations, transparency requirements will be lighter in scope thanks to the field reduction. Private securitisations can file a simplified template with EU repositories.
Expected impact:
- Public: Less duplication across fields, making transparency packs easier to compile
- Private: Simplified templates to ensure visibility without overburdening issuers
Principle-based significant risk transfer
The reforms also adjust the framework for significant risk transfer (SRT). Rather than requiring rigid mechanical tests, originators will self-assess using a principles-based methodology. For issuers and originators, this is both an opportunity and a challenge. The bar for governance is higher, but it also opens doors to more innovative structures.
Expected impact:
- More flexibility in structuring deals
- Greater responsibility for governance, documentation and internal modeling
- Clearer guidance across national supervisors, with the ESA securitisation committee leading the way
STS segregation and pooling
The new framework clarifies how STS (simple, transparent, standardised) and non-STS assets should be segregated and pooled, both for existing and future issuances. For issuers, this means adding clear STS/non-STS designations in systems and reporting pipelines, ensuring investors and supervisors see consistent categorisation throughout.
Expected impact:
- Clear STS/non-STS tagging across systems and reports, reducing the risk of misclassification
- Future-proofed portfolio management processes that support current and new issuances
Due diligence timing
Investor due diligence is also getting more flexible. In some cases, investors will have 15 days post-purchase to complete their checks rather than performing them all upfront.
Originators will still need a clean, well-prepared data package from day one, but investors can now finalise due diligence after closing. Best practice moving forward should entail a standing due diligence pack that’s ready to go at all times, rather than a one-off effort.
Expected impact:
- Reduced pre-trade bottlenecks
Stronger supervisory framework
The ESA securitisation committee will play a larger role in driving supervisory convergence. For originators operating across multiple jurisdictions, this means more predictability, with fewer conflicting interpretations from national regulators and a more level playing field for cross-border deals.
Expected impact:
- More consistent regulatory expectations across EU jurisdictions
- Greater predictability for cross-border issuances
The new regulations in practice
Here are a few examples of how the recent securitisation reforms should work in practice:
- For institutional funds or private credit players: A pension fund buying a secondary market securitisation deal now has 15 days to complete due diligence, rather than performing it upfront. This reduces operational pressure and allows for quicker portfolio adjustments
- For banks and originators: A mid-sized EU bank securitises a €500m SME loan portfolio under the revised STS framework. With the new risk-sensitive capital floor and reduced p-factor, the bank can free up more regulatory capital, enabling an additional €300m in new lending
- For issuers: An insurance company provides a guarantee on the mezzanine tranche of an on-balance-sheet securitisation. Under the new regulations, this is now eligible for STS treatment, reducing the insurer’s capital charge and making these transactions more attractive
- For SME/real economy: A manufacturing SME in Spain obtains a cheaper loan because its bank participates in securitisation, freeing up balance sheet capacity. This lowers borrowing costs and accelerates credit access for growth projects
- For green finance: A bank issues a green securitisation backed by renewable energy loans under the EU Green Bond Standard. The reform indirectly supports this by making securitisation more efficient, channeling capital toward sustainable projects
Democratising securitisation: why it matters
The latest EU securitisation reforms aim to do more than minimise paperwork. By simplifying reporting and clarifying requirements, the EU is lowering barriers to entry for market participants across jurisdictions.
These changes make securitisation more accessible for insurers, private credit funds and other non-bank participants who have historically found the process too complex or resource-heavy. For issuers and originators, that means a broader investor base, more efficient deal execution, and the potential for securitisation to become a mainstream funding tool outside the world of large banks.
How we can help
At IQ-EQ, we help issuers, arrangers and originators navigate the evolving securitisation landscape with confidence. With a global presence and offices throughout Europe, we offer a range of advisory and structuring services, transactional support and accounting services.
Whether you’re looking into smaller private or warehouse transactions or more complex multi-tranche, multi-currency benchmarks or SRT transactions, our expert team is ready to support your securitisation needs.
Ready to simplify your reporting and broaden your investor reach? Contact our team today.
