On January 17, 2018 the long-awaited framework for European securitisation came into force, comprised of:

  • Regulation (EU) 2017/2402 (the Securitisation Regulation)
  • Regulation (EU) 2017/2401 (the Securitisation Prudential Regulation).
  • Together, this legislative package represents a major milestone in the EU’s Capital Markets Union (CMU) reform agenda.

Key changes include identifying “high quality” securitisation that pose less risk and could qualify for more relaxed capital rules than other securitisation, and making securitisation more appealing by consolidating the current patchwork of securitisation rules into one place. However, market participants consider some changes as more onerous, such as the new risk retention framework and more prescriptive approach to regulating securitisation transactions.

Learn more about each initiative: