New Rules on European Crowdfunding


European Parliament’s Economic and Monetary Affairs Committee (“ECON“) published a press release announcing that it has voted to adopt a draft report on the European Commission’s legislative proposal for a Regulation on European crowdfunding service providers (“ECSPs“) (2018/0048 (COD)). READ MORE

Rating Agency Developments

On July 19, 2016, DBRS published its criteria for rating CLOs backed by loans to European SMEs (small and medium-sized enterprises).  Report.

On July 18, 2016, Fitch published its criteria for assigning new and existing ratings to sovereign issuersReport.

On July 18, 2016, Fitch published an addendum that supplements its counterparty criteria for structured finance and covered bondsReport.

On July 14, 2016, DBRS published an update to its criteria for evaluating servicers in North American CMBS transactions.  Report.

On July 14, 2016, DBRS published its criteria for rating European covered bondsReport.

On July 14, 2016, DBRS published its master European structured finance surveillance methodology.  Report.

ESMA, ISDA, and FIA Europe Publish Capital Markets Union Responses

The European Securities and Markets Authority (“ESMA”), the International Swaps and Derivatives Association (“ISDA”) and FIA Europe have published their responses to the European Commission’s Green Paper on Building a Capital Markets Union (“CMU”).

Whilst supporting the aim of building deeper and more integrated capital markets across all of the EU, ESMA’s response stressed how its main objectives of enhancing investor protection and promoting stable and orderly financial markets can contribute to the CMU. The response contains specific proposals for improved access to credit information for SMEs and increasing cross-border retail participation in investment funds such as UCITS. ISDA and FIA Europe’s joint response highlights the crucial role derivatives play in capital markets and those derivative reforms in Europe governing clearing, margining and trading activities should be calibrated to a standard that also facilitates the efficient functioning of derivatives markets, without damaging liquidity.

Rating Agency Developments

On May 9, Fitch released its guidelines for rating tender option bondsFitch Report.   

On May 9, Moody’s released its methodology for rating CLOsMoody’s Report.

On May 8, Fitch released its surveillance criteria for franchise loan ABSFitch Report

On May 7, S&P released its criteria for multiple-use special-purpose entitiesS&P Report

On May 7, S&P released its criteria for assessing guarantees in structured finance transactionsS&P Report.   

On May 7, S&P released its criteria for asset isolation and special-purpose entities in structured finance transactionsS&P Report

On May 7, Moody’s released its methodology for rating consumer loan ABS transactions.  Moody’s Report

On May 7, Moody’s released its guidelines for incorporating sovereign risk into (i) rating CDOs of SMEs in Europe; (ii) rating multi-pool financial lease-backed transactions in Italy; and (iii) rating EMEA auto loansMoody’s Report (SME CDO)Moody’s Report (Italy)Moody’s Report (EMEA Auto Loans)

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Rating Agency Developments

On January 10, DBRS released the following rating methodologies:

On January 10, S&P updated its methodology and assumptions for CLOs backed by European small and midsize enterprises (SMEs).  S&P Release. 

On January 8, Moody’s released its methodology for assessing RMBS servicing quality.  Moody’s Release. 

On January 7, Fitch updated its criteria for rating derivative product companies.  Fitch Release.  Fitch Report.

FSA Investigating Mis-selling of Swaps to SMEs

On 23 May 2012, the Treasury Select Committee published a press release on correspondence between its chairman, Andrew Tyrie, and Lord Turner, chair of the FSA, and Sir Nicholas Montagu, Financial Ombudsman Service (FOS) chairman, on the potential mis-selling of interest rate swap products to small businesses by major banks. In his letter, Lord Turner stated that the FSA is “doing more work to understand…the types of products that have been sold” and that if the FSA finds “widespread evidence” of breaches of its rules or mis-selling it “will take action”. Press Release and Correspondence.