The Securitisation Regulation: an originator perspective

The Securitisation Regulation (“SR”) (Regulation (EU) 2017/2402) consolidates and enhances existing regulatory rules applicable to securitisations. It also creates direct compliance obligations for originators, original lenders and securitisation special purpose entities (“SSPEs”), with sanctions available for non-compliance.

Two important themes arise from the SR which are of note to originators:

• a further increased focus on transparency and disclosure, with a view to enabling investors to meet their new, more rigorous, investor due diligence requirements; and
• new asset selection and credit granting rules.

We have identified seven key issues for originators to consider, which are set out below. This article focusses on standalone securitisation; the application of the SR to ABCP differs in a number of respects and should be considered separately.

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