European Union (EU).
The EU Securitisation Regulation (EU) 2017/2402 applies generally to securitisations issued on or after 1 January 2019.
The Securitisation Regulation legislative package introduces severe penalties (including fines of up to 10% of annual net turnover on a consolidated basis) for non-compliance applied to issuers, original lenders, originators and sponsors.
It repeals the main securitisation provisions in existing separate legislation for banks (the Capital Requirements Regulation, or "CRR"), insurers (Solvency II) and fund managers (the Alternative Investment Fund Managers Directive (AIFMD) regime). It replaces them with a harmonised securitisation regime applicable to all institutional investors including UCITS and pension funds.
It also introduces a concept of "simple, transparent and standardised" (or "STS") securitisations that are regulated more lightly than other securitisations.
- Capital Requirements Regulation
- Covered bond
- Securitisation special purpose vehicle
- Securitisation swap
- Significant Risk Transfer
- Solvency II
- Whole business securitisation