Regulatory Alerts2023-07-07
Added · Updated
Commission Delegated Regulation (EU) 2023/2175 on risk retention requirements for securitisation
The European Commission adopted Delegated Regulation (EU) 2023/2175 to supplement Regulation (EU) 2017/2402 by specifying regulatory technical standards for risk retention requirements applicable to originators, sponsors, original lenders, and servicers. The regulation defines synthetic and contingent forms of retention, mandates disclosure of such methods in offering documents, and establishes that liquidity facilities covering 100% of credit risk in ABCP programmes satisfy retention obligations. It further details compliance mechanisms for vertical slices, revolving exposures, and resecuritisations, while repealing Delegated Regulation (EU) No 625/2014.
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