The regulatory landscape within the European Union’s securitisation market has been recently reshaped with the implementation of new Regulatory Technical Standards (RTS) on risk retention. Now in force, these standards are a significant development for legal professionals and corporate administrators working in the securitisation sector due to their bearing on risk retention, a focal aspect of the EU Securitisation Regulation regime.
As pointed out by Morgan Lewis, the introduction of these standards has been awaited for several years by market participants who plan their strategies and operations around securitisation regulation.
The enforcement of these standards is anticipated to have far-reaching impact on the policy development and the implementation process of securitisation transactions. Legal professionals handling the securitisation matters of global corporations and law firms will need to understand the nuances of these new rules to guide their clients accordingly.
The complexity of EU’s securitisation market, combined with the challenge of factoring in risk retention, makes comprehending and adopting the new RTS a daunting task. Overcoming this regulatory hurdle has now become a crucial task to ensure ongoing compliance with the EU securitisation regime. Therefore, professionals well versed in these standards can play an instrumental role in dealing with this transition, securing a prominent position in the EU’s securitisation landscape.