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ARTICLE · 22 JANUARY 2018

New EU Securitisation Regulation: Impact For Investment Funds

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On 17 January 2018 the Securitisation Regulation (EU) 2017/2402 (the "SR") entered into force.

Cayman IslandsFinance and Banking

On 17 January 2018 the Securitisation Regulation (EU) 2017/2402 (the "SR") entered into force. The SR is available here. It applies from 1 January 2019.

The SR introduces an EU-wide set of uniform measures regulating the securitisation market. This marks a significant piece of the EU's Capital Markets Union ("CMU") reform measures.

In an investment funds context, the SR impacts both AIFs and UCITS and significant points of note are:

  • This marks a shift whereby originators / sponsors / lenders will be directly obliged to meet the requirements of the SR rather than (as is currently the case under Directive 2011/61/EU ("AIFMD")) requiring the AIFM, as the investor, to determine that the originators / sponsors / lenders have complied.

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