What will you find in this document?

• What are the securitisation undertakings as per the Luxembourg law?
• What are the securitisation undertakings as per the Regulation?
• Which entities in Luxembourg are impacted by the Regulation?
• What is included in the EU Securitisation Regulation (‘the Regulation’)?
  

Key benefits of the EU Securitisation Regulation:

The Regulation applicable on the EU securitisation entities (SSPE and STS) is termed as a victory for the European securitisation industry and is perceived as being particularly beneficial for the capital market, as it aims to:

• build the investors’ confidence in the securitisation entities;
• help investors evaluate the risks related to securitisation, both within and across products;
• improve risk management especially with the risk retention regulation as mentioned above;
• bring in transparency and regular availability of information (including the investor reports and information related to underlying exposures);
• develop a new regime of STS which will provide a more risk-sensitive framework for securitisation transactions; and
• allow STS securitisation transactions to receive preferential capital treatment and benefit from other regulatory advantages such as a proposed exemption from clearing and a proposed relaxation of margin rules for derivatives entered by an SSPE.

Click here to know more about the “EU Securitisation Regulation”