Response to consultation on draft RTS specifying the requirements for originators, sponsors, original lenders and servicers relating to risk retention

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Question 4: Do you agree with the provisions with respect to securitisations of own issued debt instruments?

The provisions under article 16 regulating securitisations of own issued debt instruments should refer also to transactions backed by own debt instruments issued by the originator or by multiple originators, in addition to those backed by debt instruments issued by the issuer. (e.g. SPV underwrites bonds issued by the originator and tranches them by issuing different classes of CLNs)

Question 6: Do you agree with the provisions in this Article with respect to assets transferred to SSPE? Are there any additional aspects that should be further specified in these RTS, taking into account that no clarification is provided with respect to Recital 11 of the Securitisation Regulation (for example, do you see any specific implications for the securitisations of NPE securitisations and how these should be tackled)?

We believe that in the case of securitisation of non performing exposures, due to the peculiarity of structural features of such transactions, the requirements set by article 18 should be considered to be complied with by the qualification itself as NPE of the securitised assets. Of course, with reference to NPE exposures the PD becomes irrelevant; the different possible values of the LGD of the securitised exposures can be matched by the discount applied to the purchase price by the investor.

Question 8: Do you have any comments on the remaining Articles of these draft RTS?

We believe that artcile 1 (d) (or the relevant whereas) of the draft RTS should specify that - in the jurisdictions where such distinction is relevant - both the master servicer and the special servicer (severally) would be entitled to fulfil retention requirements set under article 6.1 of EU Regulation 2402/2017 (subject to course to the compliance by the retainer with the requirements set by article 19 of the draft RTS).

Name of the organization

Studio Legale Cappelli RCCD