The EU Securitisation Regulation (the “Securitisation Regulation”) has been applicable since 1 January 2019. The purpose of this Legal Update is to summarise the key aspects of the Securitisation Regulation and related developments up to this time.
The Securitisation Regulation covers two main areas. Firstly, it sets out provisions in relation to all securitisations which are within the scope of the regulation, consolidating and adding to the rules
that previously applied to particular types of regulated entities. These provisions include requirements for securitisation special purpose entities (“SSPEs”), due diligence, risk retention and transparency obligations, credit-granting standards and a ban on resecuritisation, together with the relevant definitions. Secondly, the regulation sets out the criteria and other rules for simple, transparent and standardised (“STS”) securitisations. In addition, the regulation includes provisions dealing with sanctions and penalties for non-compliance, supervision by regulatory authorities, when securitisations entered into before 1 January 2019 would fall within its scope and transitional arrangements.