EU Agencies Seek to Cut Red Tape in €1.2 Trillion ABS Market

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European financial authorities are exploring ways to streamline oversight of the €1.2 trillion ($1.3 trillion) asset-backed securities market and simplify reporting requirements, according to a report that offers recommendations for policymakers.

The region’s banking, insurance and securities supervisory bodies are proposing several measures to reduce red tape associated with the issuance of the instruments, including a “simplified due diligence approach” to all institutional investors in public and private asset-backed securities, according to the report released Monday.