Irish Funds Calls for Investor-Centric Approach to EU Securitisation Reform

Irish Funds supports the European Commission’s ambition to revitalise Europe’s securitisation market and strengthen capital markets across the EU. However, to deliver meaningful outcomes, reforms must place investors at the centre of the framework.

As Members of the European Parliament’s Committee on Economic and Monetary Affairs (ECON) consider compromise amendments, Irish Funds is calling for a bold, investor-centric approach focused on two key areas: due diligence requirements and UCITS investment limits.

Proportionate Due Diligence Requirements

Irish Funds supports a proportionate, principles-based due diligence framework that removes overly prescriptive template requirements. Current proposals risk retaining restrictive rules for third-country securitisations, which could continue to limit EU investors’ access to global markets.

A more flexible approach would enable EU investors to access an estimated €2.5 trillion in additional global securitised assets, supporting diversification and improving investment opportunities.

Unlocking Demand Through UCITS Reform

Irish Funds is also advocating for the exclusion of securitisations from the UCITS single-issuer limit. This targeted change could unlock €100–150 billion in immediate demand, with a further €20–30 billion annually, supporting liquidity, diversification and market growth.

Avoiding Missed Opportunities

Irish Funds believes current reform proposals risk missing the investor objective by:

• Retaining overly prescriptive due diligence requirements for third-country securitisations, potentially excluding EU investors from global markets

• Limiting UCITS investment in securitisation, leaving a well-regulated vehicle under-utilised as a source of market demand

Addressing these issues will be key to unlocking investor demand and restoring a globally competitive EU securitisation market.

Irish Funds continues to engage constructively with policymakers and stakeholders to help ensure securitisation reform strengthens European capital markets and delivers positive outcomes for investors.

Members can access our two-page briefing outlining these recommendations on the Member Portal.