On 9 August, the European Banking Authority (EBA) published a Q&A clarifying the treatment of Conditional Sale Agreements under the Securitisation Regulation.

The Q&A confirms that where an entity enters into a conditional sale agreement with a securitisation special purpose entity (SSPE), this does not make the entity an “originator” under Article 2(3) of the Regulation. As a result, such entities cannot fulfil the risk retention requirement on this basis.

AIMA and the ACC will be responding to seek clarification on its application to existing structures and transactions that are already mid-process.

For further information please contact Nicholas Smith ([email protected])