Package of legislation harmonising covered bonds enters into force
Today, 7 January 2020, marks the entry into force of the package of legislation consisting of Directive (EU) 2019/2162, regarding the harmonisation of covered bonds, and Regulation (EU) 2019/2160, which amends Article 129 CRR, exactly 20 days following its publication in the EU Official Journal on 18 December 2019. This step taken by the legislator will put uniform covered bond standards in place at European level, securing the regulatory privileges afforded to them in the long term.
Publication in the EU Official Journal was preceded by the adoption of the package of legislation by the plenary session of the European Parliament held on 10 October 2019 and formal endorsement by the European Council on 8 November 2019. After the package of legislation comes into force on 7 January 2020, national legislators will have 18 months – i.e. until 8 July 2021 – to transpose the Directive into national law. There will then be a twelve-month transitional period – lasting until 8 July 2022 – for the application of the individual regulations.
The Association of German Pfandbrief Banks welcomes this step, as it has spent more than 50 years working towards Europe-wide dialogue and the establishment of a regulatory framework.