MFA submitted a comment letter to FSB evaluating the effects of the G20 financial regulatory reforms on securitisation.
A summary of our comments is as follows:
- While MFA is generally supportive of reforms that contribute to financial stability, we are of the view that some G20 recommendations have been implemented in a manner that is disproportionate to the risks associated with securitisations.
- In particular, we believe that the EU and UK securitisation markets are yet to reach their full potential and their growth has been hampered by excessive regulatory reforms.
- Divergent approaches to the implementation of G20 recommendations as between the US and the EU/UK have created a significant competitive disadvantage for EU and UK investors.
- MFA would welcome a recommendation by the FSB for the improved cross-border harmonisation of rules relating to the regulation of securitisations.
