29 January 2015
Practice Group(s):
Securitization and
Structured Finance
EU Disclosure Requirements for Structured
Finance Instruments from 2017 Onwards
By Andrew Petersen and James Ingham
The European Commission has recently issued a supplementary regulation relating to
regulatory technical standards on disclosure requirements for structured finance
instruments. The disclosure requirements cover structured finance instruments issued, or
are outstanding, on or after 1 January 2017 and apply to issuers, originators and
sponsors established in the European Union from that date.
The European Securities and Markets Authority will issue further guidance and technical
reporting instructions before 1 January 2017 to enable issuers, originators and sponsors
to develop adequate systems and procedures to adhere to these disclosure
requirements.
The disclosure requirements do not create additional disclosure or reporting
requirements for the underlying borrowers or obligors. Information on the underlying
borrowers or obligors will continue to be provided by the relevant borrowers or obligors to
the issuers, originators and sponsors directly or indirectly under relevant disclosure and
information undertakings, such as those that appear under Loan Market Association
finance documents.
The obligation to comply with the disclosure requirements is the joint responsibility of the
relevant issuers, originators and sponsors. The reporting entities are required to provide
information on a quarterly basis using disclosure templates set out in the supplementary
regulation, which includes reporting on:
• loan-level information;
• prospectuses;
• asset sale agreements;
• servicing, administration and cash management agreements;
• trust deeds, agency agreements and framework agreements;
• intercreditor documents;
• hedging agreements;
• deal structures;
• asset characteristics;
• cash flow; and
• note holder and secured creditor rights,
relating to the relevant structured finance instruments.
Further information as to what information is required to be disclosed from 2017 onwards
can be found in this copy of the relevant regulation. Please contact Andrew Petersen if
you have any initial queries on the above.
EU disclosure requirements for structured finance
instruments from 2017 onwards
Authors:
Andrew Petersen
andrew.petersen@klgates.com
+44.(0).20.7360.8291
James Ingham
james.ingham@klgates.com
+44.(0)20.7360.8186
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