Evaluation on Effects of G20 Reforms on Securitisation: Summary Terms of Reference

This Summary Terms of Reference provides details about the objectives, scope and process of the FSB’s evaluation of securitisation reforms.

The evaluation aims to:

• Assess the extent to which the G20 reforms on securitisation implemented to date have achieved their financial stability objectives. Specifically, the evaluation will assess whether the reforms have addressed misaligned incentives that weakened lending standards in the credit origination process, as well as opaque and complex structures that prevented proper due diligence and led to the mispricing of risks by investors.

• Examine broader effects (positive or negative) of the reforms on the functioning and structure of the securitisation markets and the implications for financing to the real economy. This type of analysis will help identify any material unintended consequences that may have to be addressed, without compromising on the objectives of the reforms.

As part of its evaluation, the FSB will incorporate feedback from stakeholders into a note with preliminary findings, which will be issued for public consultation in early 2024. The final evaluation report will be published around mid-2024.