FINLAND Trends and Developments Contributed by: Maria Lehtimäki, Waselius
The European Problem Statistically, when compared with global secu - ritisation markets, the fact is that European markets remain underdeveloped in terms of the number of issuances, as well as aggregate issue size in comparison to the size of the economy. Within Europe, the Nordic markets are among those with the least activity. It is believed that one of the primary reasons is the heterogenous nature of domestic legislation and regulation – what works in a neighbouring jurisdiction with otherwise very similar political, cultural and economic circumstances, may not work at all in another jurisdiction. Consequently, it is difficult to develop structures that have scalability across jurisdictions.
The legislative problem is exacerbated by the national competent authorities’ divergent super - visory agendas, practices and interpretations of the common European regulatory framework. Today, the main common feature among the European regulators seems to be either suspi - cion or indifference to securitisation. However, the European Securities and Markets Author - ity has commenced a review of the national competent authorities with a view to remedy - ing unhelpful or harmful supervisory practices. There is hope that this process will remove some obstacles to unlocking the hidden potential in the European markets for a greater and better functioning securitisation market.
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