EU Agencies Seek to Cut Red Tape in €1.2 Trillion ABS Market (1)

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.

The report also calls for consistent practices across the 48 authorities supervising the market, or alternatively moving to a more consolidated model.

“The key ...