Final Draft Technical Standards On Risk Retention Requirements For Securitisations Published By EBA

On April 12, 2022, the European Banking Authority (the "EBA") issued a press release announcing the publication of its final draft Regulatory Technical Standards ("RTS"), setting out the requirements for originators, sponsors and original lenders related to risk retention. Publication of these final draft RTS follows a consultation launched in June 2021. The RTS, which have been long awaited following publication of a first version back in 2018, are mandated by Article 6(7) of the EU Securitisation Regulation, and are intended to provide clarity on the risk retention requirements, ensure a better alignment of interests, and  further develop a secure and healthy securitisation market in the EU.