Portugal's Insurance and Pension Funds Supervisory Authority (ASF) issued a new regulatory standard revoking its 2021 rule that had incorporated the European Banking Authority (EBA) guidelines on the interpretation and harmonised application of simplicity, standardisation and transparency (STS) criteria for asset-backed commercial paper (ABCP) and non-ABCP securitisations, for the purposes of investor due diligence under Article 5 of Regulation (EU) 2017/2402. The revocation is linked to the publication of EBA guidelines on STS criteria for balance-sheet securitisations on 27 May 2024, which also changed the scope and addressees of the EBA’s earlier STS guidance for ABCP and non-ABCP securitisations. The regulatory standard also reflects the Portuguese allocation of supervisory responsibilities, under which ASF supervises compliance with Article 5 due diligence duties by institutional investors when they are insurance and reinsurance undertakings, occupational pension funds and their management entities, while the Portuguese Securities Market Commission (CMVM) is identified as the competent authority to supervise compliance with Articles 26 to 27 of Regulation (EU) 2017/2402, including STS requirements for balance-sheet securitisations under Articles 26-A to 26-E, by originators, original lenders, sponsors and securitisation special purpose entities. The draft measure was subject to public consultation with no comments received, and the revocation takes effect on the day after publication.

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