The Securitisation Regulation: Technical Standards on Risk Retention and Transparency

In our latest European Securities Law Update we provide a high-level insight into the recently published technical standards relating to risk retention and disclosure requirements which supplement Regulation (EU) 2017/2402 (the “Securitisation Regulation”).

The Securitisation Regulation was published in the Official Journal of the European Union on 28 December 2017 and will become directly applicable in Member States from 1 January 2019.

The Securitisation Regulation will replace the existing patchwork of sector-specific legislation governing European securitisations with harmonised rules on due diligence, risk retention and disclosure applying to all securitisations and also creates a framework for simple, transparent and standardised (“STS”) securitisations.

Together with the related regulation amending the Capital Requirements Regulation (Regulation (EU) 2017/2401)(the “CRR Amending Regulation”)Regulation”), the development of a simple, transparent and standardised securitisation market constitutes a building block of the Capital Markets Union (“CMU”) and aims to strengthen the legislative framework implemented after the financial crisis to address the risks inherent in highly complex, opaque and risky securitisation.

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