On 22 September 2025, Bankit published a position paper on the European Commission’s proposal (the “EU Commission’s Proposal”) published on 17 June 2025 to amend the securitisation legal framework[1].

In this brief alert, we will focus only on the views of Bankit concerning the proposed amendments to the EU Regulation No. 2402/2017 (the “Securitisation Regulation”, and the related amendments, the “SR Amendments”)[2].

Bankit states that streamlining measures aimed at eliminating overlapping undertakings and/or excessive requests may contribute to reviving the securitisation market. Nonetheless, Bankit calls for general caution, as the undertakings introduced by the Securitisation Regulation represent an essential protection for investors and, in turn, an element of stability of the financial markets.

In particular, Bankit expresses a favorable position with reference to the following points:

• the simplification of the schemes (i.e. reducing the number of fields regarding the reporting templates to be compiled by reporting entities and distinguishing them between voluntary and mandatory fields) to reduce compliance costs for financial intermediaries;
• assigning the responsibility for verifying the compliance with the STS criteria to the national banking authorities, in case of bank-originated securitisations.

In relation to the SR Amendments aimed at achieving more streamlined due diligence requirements, Bankit expresses a favorable stance, provided that adequate safeguards remain in place to protect investors.

Specifically, Bankit has expressed a favorable view on the following aspects:

• the exemption for the investors from verifying compliance with general obligations under the Securitisation Regulation concerning the retention rule and the relevant disclosure duties where the securitisations originate from EU entities, as compliance is already overseen by the relevant regulatory authority ;
• the introduction of a simplified due diligence procedure for repeat securitisations;
• the waiver of due diligence obligations when the junior tranche[3] is subscribed or guaranteed by a public institution, given that the assessment of the structural features of the securitisation must be carried out by that institution, as it assumes the associated risk.

Conversely, Bankit has expressed a negative view on the SR Amendment allowing the completion of the due diligence post investment. Bankit suggests that such an approach encourages risk-taking behavior[4] without adequate prior assessment, thereby rendering the regulatory safeguards substantially ineffective.

In addition, Bankit recommends that the removal of duties concerning compliance with the STS criteria should be subject to a certificate issued by the third-party verifier, considering the results in terms of prudential treatment arising from obtaining the STS label.

Finally, the Italian regulatory authority – regarding the SR Amendment introducing a sanction for violations of the due diligence duties – notes that the maximum amount of 20 percent of the global turnover appears excessively high and may negatively affect investment decisions. In this regard, Bankit considers that the sanction amount should be proportional to the amount invested rather than linked to the overall turnover.

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[1] To read the content of the EU Commission’s Proposal, please see our news alert here: https://www.wstlegal.eu/amendments-to-the-securitisation-framework-the-proposal-of-the-european-commission-to-revive-the-market/

[2] For further details please see the position paper of Bankit on the following link (document available only in Italian version): https://www.bancaditalia.it/pubblicazioni/memorie/memorie-2025/Memoria-22.09.2025.pdf.

[3] The junior tranche shall amount at least of 15 percent. of the nominal amount of the underlying assets.

[4] The proposal is aimed at promoting the negotiability of the securitisation securities; thus it refers solely to the investment on the secondary market.