The European securitisation sector has been recognised as a channel to finance the economy and boost Europe’s competitiveness. Portfolio Managers Ian Bettney and Denis Struc look at navigating the regulatory frameworks around investing in the market.
The key role of securitisation
After the Global Financial Crisis (GFC), the securitisation market became the subject of intense regulatory scrutiny. Numerous regulations have since been adopted to increase transparency, promote standardisation, as well as ensure full alignment of interest between issuers, transaction participants and end investors. The sector has since been recognised as a channel to revive the real economy and boost EU competitiveness, given its role as a financing bridge between consumers, businesses and investors.
Given the securitisation industry’s strategic role, this update offers practical insight into the securitisation frameworks in the EU and the UK. We focus on the original EU Securitisation Regulations (or EUSR) introduced in January 2019 – the Securitisation Regulation (SECR) and the Capital Requirements Regulations (CRR) – and the more recent UK Securitisation Regulatory Framework (UK SRF), implemented in November 2024. Our aim is to help investors navigate these markets and foreshadows potential simplification ahead.
