The European Banking Authority (EBA) has published final guidelines on implicit support for securitisation transactions. The guidelines have been developed pursuant to Article 248 of the Capital Requirements Regulation (CRR), which lays down restrictions on sponsor institutions and originator institutions providing support to securitisations beyond their contractual obligations. In particular, Article 248(2) of the CRR sets out a specific mandate for the EBA to issue guidelines on what constitutes arms’ length conditions and when a transaction is not structured to provide support.
The guidelines will be translated into the official EU languages and published on the EBA’s website. The deadline for Member State competent authorities to report whether they comply with the guidelines will be two months after the publication of the translations. The guidelines will apply from 1 March 2017.
View EBA publishes final guidelines on implicit support for securitisation transactions, 3 October 2016