The Alternative Credit Council and AIMA responded to the EBA consultation on the draft RTS on risk retention for securitisation. This specifies the requirements for originators, sponsors and original lenders related to risk retention as laid down in the new STS Regulation framework. 

Our response to this consultation focused on three key areas (i) the conditions for establishing a special securitisation purpose entity (SSPE; (ii) the transfer of the net material economic interest, which seems too restrictive; and (iii) the change of retainer, especially in relation to CLOs.

If you have any questions regarding this response please contact Nick Smith.