ESMA moves to simplify private securitisation reporting
The European Securities and Markets Authority (ESMA) is proposing changes to the reporting framework for private securitisations under the Securitisation Regulation (SECR). In a new consultation paper, ESMA suggests a simplified disclosure template aimed at reducing regulatory burdens while maintaining transparency. The proposed changes respond to concerns from market participants that existing templates, designed for public transactions, do not suit private deals, which often involve tailored agreements between a limited number of investors.
To address this, ESMA is introducing a new reporting template focused on aggregate-level data rather than detailed transaction-specific disclosures. The goal is to balance oversight with proportionality, ensuring that supervisory authorities receive key information without imposing unnecessary complexity on private transactions. A significant shift in the proposal is the move from XML-based reporting to CSV, a decision intended to ease compliance but one that raises questions about standardisation and automation.
This change has important implications for structured data in financial reporting. While ESMA aims to simplify requirements, reducing structured, machine-readable reporting could impact data quality, comparability, and long-term usability. Many voices in the market are advocating for a move toward more structured data, not away from it. The consultation itself asks whether the new template should evolve into a more structured format, pointing naturally to well-established digital reporting standards like XBRL. xBRL-CSV (which combines the benefit of structured data definitions and simplicity of CSV formats).
You can download the full proposal here. Feedback is open until 31 March 2025.
