WASHINGTON, June 17, 2025 – The Structured Finance Association (SFA), a leading trade association representing the structured finance and securitization industry, welcomes the European Commission’s proposed reform of EU securitization rules. An appropriately regulated securitization market promotes risk sharing within the financial system and contributes to financial stability, while ensuring efficient credit distribution across economies. As a key bridge between bank and non-bank funding, a revitalized EU securitization market will also help deliver on the objectives of Europe’s Savings & Investment Union.
“We applaud the European Commission for making it a priority to revive and grow a safe and secure securitization market. Our initial read of the proposal is that the focus on updating due diligence and disclosure requirements to make them more proportionate is a positive step in helping securitization finance the European economy,” said SFA CEO Michael Bright. “Some sensible, prudentially appropriate adjustments to capital requirements for the banking sector are proposed that can also help a great deal. In addition, the Commission’s description of its intended amendments to the insurance capital rules is encouraging and we look forward to reviewing it when published in the coming weeks. As the EU moves forward, we hope they will build a market that allows citizens and businesses, as well as the economy as a whole, to reap the benefits of safe investments and increased access to responsible credit that securitization can offer.
SFA looks forward to continuing its constructive engagement with European policy makers as negotiations begin, and SFA CEO Michael Bright recently published a blog post encouraging a modernization of the EU’s securitization regime.
About the Structured Finance Association:
With more than 370 member institutions comprised of accounting firms, broker/dealers, diversified financial intermediaries, investors, issuers, IT vendors, law firms, mortgage insurers, other small financial institutions, rating agencies, servicers, and trustees, SFA is the leading voice for the global securitization industry.
SFA is focused on helping grow the real economy and improving the lives of individuals, families, businesses; helping make credit more affordable and available to people who need it to finance some of life’s biggest goals — education, car purchases, starting a business, buying a home — or reduce their debt through consolidation loans; safeguarding essential protections for consumers and the financial system; facilitating valuable dialogue among the financial services market, its practitioners, policymakers and the broader public; and recognizing that all finance entails risk, but it should not involve recklessness.
For inquiries, please contact:
Walt Cronkite, Director of Communications, SFA