AFME Commends European Commission’s Securitization Proposals
Firminy Capital Sarl has spent almost a decade administering the Firminy Equity Fund, which offers risk-valued securities products to help investors grow their assets. Headquartered in Luxembourg, Firminy Capital Sarl updates the fund’s financials supervised by the European Securitization Forum with the Association for Financial Markets in Europe (AFME). AFME recently issued a press release to commend the European Commission’s new securitization proposals. In the press release, AFME explained that creating a “simple, transparent and standardized (STS) securitization market” is essential to the commission’s capital markets union project. AFME’s head of fixed income also noted that the proposals represent a robust beginning to the process of rejuvenating a securitization market that is capable of facilitating deeper capital markets and financing for homeowners, small businesses, and consumers in Europe. The organization highlighted a number of positive changes in the proposals, including more structure for short-term securitization, modifications to the Basel capital hierarchy, and standardization of due diligence practices across investor types. According to AFME’s chief executive, legislators in the EU need to move quickly on the regulation adjustments and eliminate lingering uncertainties.