On 10 July 2023, the European Commission published a draft Commission Delegated Regulation of 7 July 2023, supplementing the Securitisation Regulation with regard to regulatory technical standards (RTS) specifying in greater detail the risk retention requirements for originators, sponsors, original lenders and servicers.
The final draft RTS, in accordance with Article 6 (7) of the Securitisation Regulation, specify the risk retention requirements and, in particular, specify the:
- Requirements on the modalities of retaining risk.
- Measurement of the level of retention.
- Prohibition of hedging or selling the retained interest.
- Conditions for retention.
- Prohibition of hedging or selling the retained interest.
- Conditions for retention on a consolidated basis.
- Conditions for exempting transactions based on clear, transparent and accessible index.
- Modalities of retaining risk in case of traditional securitisations of non-performing exposures.
- Impact of fees paid to the retainer on the effective material net economic interest.
The Delegated Regulation enters into force on the twentieth day following that of its publication in the Official Journal of the European Union.
