ICMA CBIC issues position paper on EU covered bond legislation

20 April 2018

The Covered Bond Investor Council (CBIC) has issued a position paper on the recently released European Commission’s legislative proposal on covered bonds.

The CBIC welcomes the legislative initiative on covered bonds. Investors appreciate the blueprint this law will provide to countries that do not yet have a covered bond law. Furthermore, the CBIC appreciates that the Commission has adopted a principles based approach that should allow existing national frameworks to continue to operate as before. This flexibility is welcome, however in some places it goes too far and risks lowering the high standards investors have come to expect in covered bonds. Our position paper develops on some of the areas, such as eligible assets or extendable maturities, where investors would like to see more clarity and stricter criteria to ensure investor protection is upheld. The CBIC will engage with policy makers in the coming months on this proposal to ensure that the investor voice is heard in the legislative process.

Full position paper

Commission’s legislative proposal on covered bonds

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