In its work programme published on 11 February 2025, the European Commission announced that it is planning on reviewing the EU's securitisation framework with a legislative proposal expected in the second quarter of 2025. The is part of the savings and investments union for which a communication is planned in the first quarter of 2025. The objective of the savings and investment union (SIU) is to provide a major blueprint for measures to create a true internal market for capital. Ultimately, the SIU is aimed at facilitating access investment and funding opportunities to EU economy, help financial institutions to achieve scale and become more competitive on the global market, and help the EU meet its unprecedented funding needs.

On 17 June 2025, the Commission published a package of proposals to amend the securitisation framework.

In the proposals, the Commission announces that the purpose of the review is to 'remove undue issuance and investment barriers' in the EU securitisation market, specifically:  

• Undue operational costs for issuers and investors, balancing with adequate standards of transparency, investor protection and supervision;
• Adjust the prudential framework for banks and insurers.

The package is composed of 4 proposals amending two regulations and two delegated regulations. Specifically:

• Regulation (EU) 2017/2402 laying down the securitisation framework;

• Regulation (EU) No 575/2013 on capital requirements for banks holding and investing into securitisation - known as the capital requirement regulation, CRR;

• Commission Delegated Regulation (EU) 2015/61 on Liquidity Coverage Ratio (LCR);

• Commission Delegated Regulation (EU) 2015/35 on capital requirements for insurance and reinsurance undertakings, known as Solvency II.

References:

• EP Legislative Observatory, Amending Regulation (EU) 2017/2402 for securitisation and creating a specific framework for simple, transparent and standardised securitisation, 2025/0826(COD)
• EP Legislative Observatory, Prudential requirements for credit institutions as regards requirements for securitisation exposures, 2025/0825(COD)
• European Commission, Proposal for a Regulation amending Regulation (EU) 2017/2402 of 12 December 2017 laying down a general framework for securitisation and creating a specific framework for simple, transparent and standardised securitisation, COM(2025)0826
• European Commission, Proposal for a Regulation amending Regulation (EU) No 575/2013 on prudential requirements for credit institutions as regards requirements for securitisation exposures, COM(2025)0825
• European Commission, A bolder, simpler, faster Union: the 2025 Commission work programme, Press Release, 12 February 2025.
• European Commission, Commission work programme 2025 Moving forward together: A Bolder, Simpler, Faster Union, Communication, 11 February 2025.

Further readings

• European Parliament, EPRS, Review of the EU securitisation framework - The Securitisation Regulation and the Capital Requirements Regulation, Briefing, June 2025

Author: Issam Hallak, Members' Research Service, legislative-train@europarl.europa.eu