The EBA Publishes Draft Regulatory Technical Standards On The Risk Retention Requirements Under The EU Securitisation Regulation

Introduction

On 15 December 2017, the European Banking Authority ("EBA") published a consultation paper (the "Consultation Paper") containing draft Regulatory Technical Standards on the risk retention requirements¹ (the "Risk Retention RTS") under the EU regulation intended to lay down common rules on securitisation and to create a European framework for "simple, transparent and standardised" securitisation (the "Securitisation Regulation").²

Legislative Background

On 20 November 2017, the Council of the European Union, which comprises representatives of the Member States, announced that it had that day adopted the Securitisation Regulation. The European Parliament had previously voted to approve the Securitisation Regulation at a plenary session on 26 October 2017. We summarised the key provisions and commented on the obligations that will arise under the Securitisation Regulation in our Clients and Friends Memorandum dated 26 October 2017.