The International Organization of Securities Commissions (IOSCO) has published a final report on the Peer Review of Implementation of Incentive Alignment Recommendations for Securitisation. The final report describes the implementation progress made by jurisdictions in adopting legislation, regulation and other policies in relation to incentive alignment in securitisation.

IOSCO published the Incentive Alignment Recommendations in November 2012, as part of its final report on Global Developments in Securitisation Regulations. The final report now published covers the three Incentive Alignment Recommendations in the 2012 report, which call for national authorities to:

  • evaluate incentives across the securitisation value chain, formulate and implement approaches to incentive alignment;
  • set out the elements of the incentive alignment approach, including risk retention; and
  • seek to minimise the potentially adverse effects to cross-border securitisation transactions resulting from differences in approaches to incentive alignment and risk retention.

EU jurisdictions and the US were generally further progressed in their implementation than many jurisdictions with smaller securitisation markets.

View IOSCO publishes review of implementation of incentive alignment recommendations for securitisation, 3 September 2015