On 5 March 2024, the European Commission adopted a delegated regulation that will supplement the EU Securitisation Regulation with regulatory technical standards (“RTS“) in relation to simple, transparent and standardised (“STS“) securitisations where the underlying exposures are residential loans or auto loans or leases. The RTS specify the content, methodologies and presentation of information related to the principal adverse impacts (“PAIs“) of assets financed by the underlying exposures on sustainability factors for (i) non-asset-backed commercial paper (“non-ABCP”) traditional STS securitisations and (ii) STS on-balance-sheet securitisations.

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