GREECE Law and Practice Contributed by: Panagiotis (Notis) Sardelas, Matina Kagkelari and Anna Zlatoudi, Sardelas Petsa Law Firm
• the trigger events affecting the priority of payments or the replacement of the parties involved; • the cash flows generated by the underlying exposures and the liabilities of the securitisa - tion; and • risk retention. Furthermore, there are reporting obligations on any inside information relating to the securitisa - tion that the originator, sponsor or SPE is obliged to make public in accordance with MAR and, where the above do not apply, information on any significant event that can materially impact the performance of the securitisation, such as any material amendment to the transaction doc - uments, any material breach of the obligations provided for in the transaction documents, or any material change in the structure or the risk characteristics of the securitisation or the under - lying exposures. See 4.3 Credit Risk Retention regarding the penalties imposed for non-compliance with the periodic disclosure requirements under the EU Securitisation Regulation. Additional periodic disclosure requirements apply to banks under the CRR. 4.5 Activities of Rating Agencies Rating agencies are governed by Regulation (EC) 1060/2009 of the European Parliament and of the Council of 16 September 2009 on credit rating agencies, as amended, and Greek Law 3867/2010. The HCMC is the Greek authority responsible for the registration and supervision of rating agencies established in Greece and the imposition of fines and other measures, along with the European Securities and Markets Authority (ESMA).
In some cases, the rating of the notes issued in the context of the securitisation transaction is necessary. For instance, under the Securitisation Law, mutual funds and investment holding com - panies established in Greece may only invest in notes that have been assigned an “investment grade” by an internationally accepted rating agency. See 4.12 Participation of Government- Sponsored Entities regarding the rating of the senior notes of securitisation transactions under the HAPS Law. 4.6 Treatment of Securitisation in Financial Entities Credit institutions and large investment firms have to calculate their regulatory capital as pro - vided for under the CRR. Securitisation may be an important risk management tool for banks. Simple, transparent and standardised (STS) securitisations within the meaning of the EU Securitisation Regulation draw a more benefi - cial capital treatment, which is an incentive for originators and investors. Pursuant to the CRR, a bank may exclude the underlying exposures from its calculation of risk- weighted exposure amounts if the securitisation meets the regulatory criteria for significant risk transfer (STS). The CRR establishes standard - ised tests to assess whether the credit risk trans - ferred is significant and, consequently, whether the bank’s capital requirements can be reduced. The SRT principle is applicable to both tradition - al and synthetic securitisations. Originators of SRT securitisations should notify the European Central Bank (ECB) of their intentions at least three months in advance of the expected closing date of the transaction. Insurance and reinsurance undertakings are subject to specific capital requirements pursu -
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