The new Securitisation Regulation sets out, amongst other matters, requirements on the retention of material net economic interest in relation to exposures to securitisations, which will replace the requirements currently set out in the Capital Requirements Regulation (the CRR).
As a consequence, these draft RTS will replace the current Commission Delegated Regulation on risk retention. However, given the cross-sectoral nature of its application, the new STS Regulation contains transitional provisions regarding the application of the existing Delegated Regulation to those securitisations whose securities were issued before its application date.
In addition, due to the narrower mandate under the STS Regulation as opposed to that which was set out in the CRR for the current Delegated Regulation, certain provisions from the existing Delegated Regulation were not included in these draft RTS, in particular those relating to due diligence requirements, policies for credit granting and disclosure of materially relevant data.
Furthermore, various new provisions were added, in particular relating to when an entity shall be deemed not to have been established or to operate for the sole purpose of securitising exposures, transfers or hedging of the retained interest, circumstances under which the retainer should be changed and adverse selection of assets.
Responses to this consultation can be sent to the EBA by 15 March 2018. A public hearing will take place at the EBA premises on 19 February 2018 from 14:00 to 16:00 hours UK time.
Press release
Consultation paper
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