Maria Luís Albuquerque
Commissioner for Financial Services and the Savings and In-
vestments Union
European Commission
Response from the Danish Government to the Commission’s targeted con-
sultation on the EU securitisation framework
Dear Commissioner Albuquerque,
Thank you for the opportunity to respond to the Commission’s public consultation
on the functioning of the EU securitisation framework.
Well-functioning and diverse funding markets are important for underpinning
growth, employment, and innovation in Europe. To ensure this, financial regula-
tion must be effective and efficient while at the same time safeguarding financial
stability. Thus, we welcome initiatives aiming at simplifying and improving the
regulatory framework.
Therefore, Denmark is ready to consider simplifications and adjustments to cer-
tain requirements relating to the EU securitisation framework. We would like to
emphasize the following points.
A proposal should be based on thorough assessments of risks and impacts
An important guiding principle should be that the regulation should continue to
contain and mitigate the risks for issuers of and investors in securitisations. It is a
fundamental principle that the regulation and capital requirements need to be risk-
based and reflect actual risk-levels. Any changes to the prudential requirements
should be based on thorough analyses and assessments of the impact on potential
risks to avoid unintended consequences in terms of reduced robustness and resil-
ience of the markets.
We have a shared responsibility to make sure that any substantial change is based
on specific problems or identified gaps in the regulation. The work should be
supported by impact assessments to underpin that any changes have the intended
impact and implications both for the private and public sector.
An appropriate role as part of the wider European funding landscape
Another guiding principle should be to avoid negative impact on well-functioning
markets, in particular the covered bonds markets, which already play an important
and stabilising role in the European funding landscape. An increased role for se-
curitisations should not come at the expense of already well-functioning funding
instruments such as covered bonds, as little real value would be added in terms of
an increase in total funding supply.
MINISTER FOR INDUSTRY,
BUSINESS AND FINANCIAL
AFFAIRS
MINISTRY OF INDUSTRY, BUSI-
NESS AND FINANCIAL AFFAIRS
Slotsholmsgade 10-12
DK-1216 Copenhagen K
Tlf.
Fax
+45 33 92 33 50
+45 33 12 37 78
CVR-nr. 10 09 24 85
EAN nr. 5798000026001
www.em.dk