The European Union’s recast risk retention regulations have entered their final phase, marking a cessation of anticipation for many legal and financial professionals around the globe. The recast risk retention regulatory technical standards (RTS) have found their place in the Official Journal on October 18, 2023, and are projected to come into effect on November 7, 2023.
These far-reaching regulations are integral to the EU Securitisation Regulation, an expansive body of law that has undeniably altered the landscape for financial and legal entities operating within the European Union.
As has been keenly observed by the team at Allen & Overy LLP, the release of the final text of the rules signifies the long-awaited closure to a process that has been the subject of countless legal reviews, industry meetings, and debates. Allen & Overy was among the first to report the news of the risk retention rules’ impending enactment, with their insights published on JDSupra.
Details of the final recast Risk Retention RTS are not fully laid out, which leaves us with only the title and meta description available for analysis at this time. However, one can expect that these regulations will play a key role in shaping the future of the securitisation practices within the EU and creating an equal playing field for all involved parties.
The impending enactment of these regulations underscores the importance of remaining abreast of all regulatory developments within the EU finance and securities sectors. Legal professionals in corporations and law firms are highly advised to carefully review the final RTS upon publication, and to prepare their strategies accordingly.