On 12 April 2022, the European Banking Authority (EBA) published final draft regulatory technical standards (RTS) on the risk retention requirements for securitisations. The draft RTS have been developed in accordance with Article 6(7) of the Securitisation Regulation (as amended), which mandates the development of RTS further specifying risk retention requirements.
A substantial part of the provisions on risk retention set out in the previous RTS on risk retention adopted by the EBA in 2018 have been carried over into the draft RTS with some modifications. For example, several provisions have been included in the draft RTS that address the extended mandate for the EBA on risk retention under Article 6(7) following amendments to the Securitisation Regulation under Regulation (EU) 2021/557. The draft RTS also address specific issues relating to risk retention including, modalities of risk retention in traditional non-performing exposures (NPE) securitisations, expertise of the servicer in NPE securitisations and clarification of the synthetic excess spread. Several other modifications have been made to existing provisions for the sake of ensuring consistency with the mandate and providing further clarity on some specific aspects.