In response to recent events in the credit markets, discussion in ECOFIN (the EU Council of Finance Ministries) and discussions between the financial industry and the European Commission, the industry set up a Working Group (WG) to examine the securitisation disclosure requirements embodied within the Pillar 3 Framework set up by the Basel Accord and the Capital Requirements Directive.
The industry WG is composed by the European Banking Federation, the London Investment Banking Association, the European Savings Banks Group and the European Association of Public Banks and a number of banks.
The objective of this WG is to achieve more consistency in banks’ disclosures in the area of the securitisation by means of good practice guidelines.
On 30 June 2008 the industry published a draft industry guidelines “Good Practice Guidelines on Pillar 3 Disclosure requirements for Securitisation”. On the basis of the responses received, the Working Group will finalise the guidelines. These guidelines could be adopted by the banks that will publish Pillar 3 disclosures in 2009.
The WG believes that the guidelines should not be static but be subject to review and revision. For example, these industry guidelines should be updated in light of Basel Committee’s recommendations that the BCBS will issue by 2008 in order to strengthen disclosure requirements under Pillar 3.
On 15 September ABI sent its comments to industry WG.
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