The Draft EU Securitisation Regulation Of 30 September 2015

The new draft regulation 'laying down common rules on securitisation and creating a European framework for simple, transparent and standardised securitisation' (the "STSR") proposes new rules relating to:

1. risk retention: including revisions to the CLO originator definition and the possibility of criminal sanctions and large fines for non-compliance;
2. simple, transparent and standardised securitisation ("STS securitisation");
3. due diligence: including retrospective provisions applicable to existing securitisations; and
4. disclosure: including obligations to disclose to both investors and regulators.

This client briefing summarises some of the headline features of each of these four new sets of rules. We will circulate further briefings when the STSR is finalised and published in the Official Journal.