FR15/2019 Update to the IOSCO Peer Review of Implementation of Incentive Alignment Recommendations for Securitisation

Update to the IOSCO Peer Review of Implementation of Incentive Alignment Recommendations for Securitisation The Board of the International Organization of Securities Commissions FR15/2019 OCTOBER 2019 ii Copies of publications are available from: The International Organization of Securities Commissions website www.iosco.org © International Organization of Securities Commissions 2019. All rights reserved. Brief excerpts may be reproduced or translated provided the source is stated. iii Contents 1. EXECUTIVE SUMMARY .......................................................................................... 1 2. BACKGROUND .......................................................................................................... 3 2.1. 2015 PEER REVIEW ......................................................................................................... 3 2.2. 2015 PEER REVIEW FINDINGS ......................................................................................... 3 3. UPDATE REVIEW METHODOLOGY ................................................................... 4 3.1. OBJECTIVES AND SCOPE .................................................................................................. 4 3.2. REVIEW TEAM ................................................................................................................. 4 3.3. REVIEW PROCESS ............................................................................................................ 4 Table 1 — Reporting Scale used for Peer Review .............................................................. 5 4. KEY FINDINGS .......................................................................................................... 5 4.1. OVERVIEW ...................................................................................................................... 5 4.1.1. 2018.................................................................................................................... 5 4.2. CHANGES IN REPORTED IMPLEMENTATION STATUS IN 2018 ........................................... 6 4.2.2. European Union ................................................................................................. 6 4.2.2.1. France ................................................................................................................ 8 4.2.2.2. Germany ............................................................................................................. 8 4.2.2.3. Italy .................................................................................................................... 9 4.2.2.4. The Netherlands ............................................................................................... 10 4.2.2.5. Spain ................................................................................................................ 10 4.2.2.6. United Kingdom ............................................................................................... 11 4.5. OTHER REFORMS NOT AFFECTING IMPLEMENTATION STATUS ..................................... 12 4.5.1. Argentina.......................................................................................................... 12 4.5.2. Australia ........................................................................................................... 13 4.5.3. Brazil ................................................................................................................ 13 4.5.4. China ................................................................................................................ 14 4.5.5. Indonesia .......................................................................................................... 15 4.5.6. Russia ............................................................................................................... 15 4.5.7. Saudi Arabia .................................................................................................... 17 4.6. JURISDICTIONS WITH NO OR NO MATERIAL SECURITISATION MARKETS ...................... 17 5. SUMMARY OF IMPLEMENTATION STATUS .................................................. 18 5.1. UPDATE OF IMPLEMENTATION PROGRESS ..................................................................... 18 Table 2 — Implementation Status by Reform Area and Year ....................................... 18 APPENDIX I – IOSCO RECOMMENDATIONS FOR INCENTIVE ALIGNMENT IN SECURITISATION ....................................................................................................... 22 APPENDIX II – LIST OF PARTICIPATING JURISDICTIONS IN THE UPDATE REVIEWS ............................................................................................................................ 24 1 1. Executive Summary This report (Report) sets out the findings of a limited-scope review (Update Review) conducted in 2018 by the International Organ