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(c) for UCITS and UCITS management companies, the competent authority designated in accordance with Article 97 of Directive 2009/65/EC;
(d) for institutions for occupational retirement provision, the competent authority designated in accordance with point (g) of Article 6 of Directive 2003/41/EC of the European Parliament and of the Council ();
(e) for credit institutions or investments firms, the competent authority designated in accordance with Article 4 of Directive 2013/36/EU, including the ECB with regard to specific tasks conferred on it by Regulation (EU) No 1024/2013.
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4. For originators, original lenders and SSPEs established in the Union and not covered by the Union legislative acts referred to in paragraph 3, Member States shall designate one or more competent authorities to supervise compliance with the obligations set out in Articles 6, 7, 8 and 9. Member States shall inform the Commission and ESMA of the designation of competent authorities pursuant to this paragraph by 1 January 2019. That obligation shall not apply with regard to those entities that are merely selling exposures under an ABCP programme or another securitisation transaction or scheme and are not actively originating exposures for the primary purpose of securitising them on a regular basis.
5. Member States shall designate one or more competent authorities to supervise the compliance of originators, sponsors and SSPEs with Articles 18 to 27, and the compliance of third parties with Article 28. Member States shall inform the Commission and ESMA of the designation of competent authorities pursuant to this paragraph by 10 October 2021. Until the designation of a competent authority to supervise the compliance with the requirements set out in Articles 26a to 26e, the competent authority designated to supervise the compliance with the requirements set out in Articles 18 Januaryto 201927 applicable at 8 April 2021 shall also supervise the compliance with the requirements set out in Articles 26a to 26e.
6. Paragraph 5 of this Article shall not apply with regard to those entities that are merely selling exposures under an ABCP programme or other securitisation transaction or scheme and are not actively originating exposures for the primary purpose of securitising them on a regular basis. In such a case, the originator or sponsor shall verify that those entities fulfil the relevant obligations set out in Articles 18 to 27.
7. ESMA shall ensure the consistent application and enforcement of the obligations set out in Articles 18 to 27 of this Regulation in accordance with the tasks and powers set out in Regulation (EU) No 1095/2010. ESMA shall monitor the Union securitisation market in accordance with Article 39 of Regulation (EU) No 600/2014 of the European Parliament and the Council () and apply, where appropriate, its temporary intervention powers in accordance with Article 40 of Regulation (EU) No 600/2014.
8. ESMA shall publish and keep up-to-date on its website a list of the competent authorities referred to in this Article.
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The review referred to in the first subparagraph shall include:
(a) the processes and mechanisms to correctly measure and retain the material net economic interest on an ongoing basis, in accordance with Article 6(1) and the gathering and timely disclosure of all information to be made available in accordance with Article 7;
(aa) andfor exposures that are not part of an NPE Securitisation:
(i) the credit-granting criteria applied to performing exposures in accordance with Article 9;
(ii) the sound standards for selection and pricing applied to underlying exposures that are non-performing exposures as referred to in the second subparagraph of Article 9(1);
(b) for STS securitisations which are not securitisations within an ABCP programme, the processes and mechanisms to ensure compliance with Article 20(7) to (12), Article 21(7), and Article 22;; and
(c) for STS securitisations which are securitisations within an ABCP programme, the processes and mechanisms to ensure, with regard to ABCP transactions, compliance with Article 24 and, with regard to ABCP programmes, compliance with Article 26(7) and (8);
(d) for NPE securitisations, the processes and mechanisms to ensure compliance with Article 9(1) preventing any abuse of the derogation provided for in the second subparagraph of Article 9(1); and
(e) for STS on-balance-sheet securitisations, the processes and mechanisms to ensure compliance with Articles 26b to 26e.
3. Competent authorities shall require that risks arising from securitisation transactions, including reputational risks, are evaluated and addressed through appropriate policies and procedures of originators, sponsors, SSPEs and original lenders.
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1. Within the limits of its mandate, the ESRB shall be responsible for the macroprudential oversight of the Union’s securitisation market.
2. In order to contribute to the prevention or mitigation of systemic risks to financial stability in the Union that arise from developments within the financial system and taking into account macroeconomic developments, so as to avoid periods of widespread financial distress, the ESRB shall continuously monitor developments in the securitisation markets. Where the ESRB considers it necessary, orand at least every 3three years, the ESRB shall, in cooperation with EBA, publish a report on the financial stability implications of the securitisation market in order to highlight financial stability risks.
3. Without prejudice to paragraph 2 of this Article and to the report referred to in Article 44, the ESRB shall, in collaborationclose cooperation with the EBAESAs, publish by 31 December 2022 a report onassessing the impact of the introduction of STS on-balance-sheet securitisations on financial stability, implicationsand any potential systemic risks, such as risks created by concentration and inter-connectedness among non-public credit protection sellers.
The ESRB report referred to in the first subparagraph shall take into account the specific features of synthetic securitisation, namely its typical bespoke and private character in financial markets, and examine whether the treatment of STS on-balance-sheet securitisation marketis conducive to overall risk reduction in the financial system and to better financing of the real economy.
When Ifpreparing materialits risksreport, arethe observedESRB shall use a variety of relevant data sources, such as:
(a) data collected by competent authorities in accordance with Article 7(1);
(b) the outcome of reviews carried out by competent authorities in accordance with Article 30(2); and
(c) data held in securitisation repositories in accordance with Article 10.
4. In accordance with Article 16 of Regulation (EU) No 1092/2010, the ESRB shall provide warnings and, where appropriate, issue recommendations for remedial action in response to thosethe risks pursuantreferred to Articlein 16paragraphs of2 Regulationand (EU)3 Noof 1092/2010this Article, including on the appropriateness of modifying the risk-retention levels, or the taking of other macroprudential measures,.
Within tothree themonths Commission,of the ESAsdate andof totransmission of the Member States. The Commissionrecommendation, the ESAsaddressee andof the Memberrecommendation States shall, in accordance with Article 17 of Regulation (EU) No 1092/2010, communicate to the ESRBEuropean Parliament, the EuropeanCouncil, Parliamentthe Commission and the CouncilESRB the actions undertakenit has taken in response to the recommendation and shall provide adequate justification for any inaction within three months of the date of transmission of the recommendation to the addressees.
Article 32 Administrative sanctions and remedial measures
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(d) an originator, sponsor or SSPE has failed to meet the requirements provided for in Article 18;
(e) a securitisation is designated as STS and an originator, sponsor or SSPE of that securitisation has failed to meet the requirements provided for in Articles 19 to 22, or Articles 23 to 26 or Articles 26a to 26e;
(f) an originator or sponsor makes a misleading notification pursuant to Article 27(1);
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(c) a temporary ban preventing any member of the originator’s, sponsor’s or SSPE’s management body or any other natural person held responsible for the infringement from exercising management functions in such undertakings;
(d) in the case of an infringement as referred to in point (e) or (f) of the first subparagraph of paragraph 1 of this Article, a temporary ban preventing the originator and sponsor from notifying under Article 27(1) that a securitisation meets the requirements set out in Articles 19 to 22, or Articles 23 to 26 or Articles 26a to 26e;
(e) in the case of a natural person, maximum administrative pecuniary sanctions of at least EUR 5 000 000 or, in the Member States whose currency is not the euro, the corresponding value in the national currency on 17 January 2018;
(f) in the case of a legal person, maximum administrative pecuniary sanctions of at least EUR 5 000 000 , or in the Member States whose currency is not the euro, the corresponding value in the national currency on 17 January 2018 or of up to 10 % of the total annual net turnover of the legal person according to the last available accounts approved by the management body; where the legal person is a parent undertaking or a subsidiary of the parent undertaking which has to prepare consolidated financial accounts in accordance with Directive 2013/34/EU of the European Parliament and of the Council (), the relevant total annual net turnover shall be the total net annual turnover or the corresponding type of income in accordance with the relevant accounting legislative acts according to the last available consolidated accounts approved by the management body of the ultimate parent undertaking;
(g) maximum administrative pecuniary sanctions of at least twice the amount of the benefit derived from the infringement where that benefit can be determined, even if that exceeds the maximum amounts in points (e) and (f);
(h) in the case of an infringement as referred to in point (h) of the first subparagraph of paragraph 1 of this Article, a temporary withdrawal of the authorisation referred to in Article 28 for the third party authorised to checkassess the compliance of a securitisation with Articles 19 to 22, or Articles 23 to 26 or Articles 26a to 26e.
3. Where the provisions referred to in the first paragraph apply to legal persons, Member States shall confer on competent authorities the power to apply the administrative sanctions and remedial measures set out in paragraph 2, subject to the conditions provided for in national law, to members of the management body, and to other individuals who under national law are responsible for the infringement.
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