Circular CSSF 19/719 is a CSSF circular, published 15 May 2019. Subject: Implementation of the EBA Guidelines on the STS criteria for non-ABCP securitisation and the STS criteria for ABCP securitisation.
\nRelevant for: AIFMs, Credit institutions, Investment firms, Investment fund managers, Management companies - Chapter 15, Management companies - Chapter 16, Pension funds, Securitisation undertakings, UCITS.
\nAmended by Circular CSSF 24/868.
\nCircular CSSF 19/719 as amended by Circular CSSF 24/868 Implementation of the EBA Guidelines on the STS criteria for nonABCP securitisation and the STS criteria for ABCP securitisation To all originators, original lenders, sponsors, securitisation special purpose entities, investors and third parties verifying simple, transparent and standardised (STS) compliance
\nLuxembourg, 15 May 2019 Ladies and Gentlemen, On 12 December 2018, the European Banking Authority (EBA) issued guidelines (EBA/GL/2018/08 and EBA/GL/2018/09) in accordance with Articles 19(2) and 23(3) of Regulation 2017/2402 1 (hereinafter the “Guidelines”) on the harmonised interpretation and application of the STS criteria (Simple, Transparent and Standardised) set out in Articles 20, 21 and 22 of Regulation 2017/2402 for non-ABCP securitisation (Asset Backed Commercial Papers) and of the STS criteria set out in Articles 24, 25 and 26 of Regulation (EU) 2017/2402 for ABCP securitisation. The main objective of the Guidelines is to provide a single point of consistent interpretation of the STS criteria and ensure a common understanding of them across the European Union by the originators, original lenders, sponsors, securitisation special purpose entities (SSPEs), investors, competent authorities and third parties verifying compliance with STS criteria in accordance with Article 28 of Regulation 2017/2402. The Guidelines will be applied on a cross-sectoral basis throughout the European Union with the aim of facilitating the adoption of the STS criteria, which is one of the prerequisites for the application of a more differentiated and risk-sensitive regulatory treatment of exposures to securitisations under the new securitisation framework. The Guidelines will enter into force on 15 May 2019. The Guidelines are annexed to this circular. They are also available on the EBA’s website at: Guidelines on the STS criteria for ABCP and non-ABCP securitisation | European Banking Authority On 27 May 2024, the EBA issued guidelines (EBA/GL/2024/05) in accordance with Article 26a(2) of Regulation 2017/2402 (hereinafter the “New Guidelines”) on the STS criteria for on-balance sheet securitisation and amending the Guidelines. The CSSF has integrated the Guidelines and the New Guidelines into its administrative practice and regulatory approach with a view to promoting supervisory convergence in this field at the European level. The New Guidelines include a limited set of targeted amendments to the Guidelines, for a specific number of requirements, to ensure that the interpretation provided by the EBA is consistent across all three guidelines. The New Guidelines are annexed to this circular. They are also available on the EBA’s website at:
\n1 Regulation (EU) 2017/2402 of the European Parliament and of the Council of 12 December 2017 laying down a general framework for securitisation and creating a specific framework for simple, transparent and standardised securitisation, and amending Directives 2009/65/EC, 2009/138/EC and 2011/61/EU and Regulations (EC) No 1060/2009 and (EU) No 648/2012 (Regulation 2017/2402)
\nGuidelines on the STS criteria for on-balance-sheet securitisations | European Banking Authority The CSSF expects that all in-scope entities apply the Guidelines and the New Guidelines.
\nThe text above is the opening of the document; the PDF carries the whole.
\nDocument page, PDF. Source: Commission de Surveillance du Secteur Financier (CSSF), reproduced with the CSSF's consent. The French text prevails.
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