Regulatory Technical Standards on Risk Retention Adopted with No Significant Changes by European Parliament

The European Parliament has adopted Commission Delegated Regulation (EU) No 625/2014 of 13 March 2014, relating to Articles 404-410 of the Capital Requirements Regulation (CRR), which replaced the legislation referred to as Article 122a of the Capital Requirements Directive. The adopted regulatory technical standards (RTS) can be found here.

The RTS was published in the Official Journal on Friday 13 June 2014 and comes into force on 3 July 2014 (20 days after publication in the Official Journal). The RTS brings into force the provisions of the final draft regulatory technical standards published by the European Commission on 13 March 2014 (Final Draft RTS), which specify the requirements for investor, sponsor, original lender and originator institutions relating to exposures to transferred credit risk under Articles 404-410 of the CRR.

The RTS adopt the provisions of the Final Draft RTS without any substantive amendments. For a summary of the changes made by the Final Draft RTS from the previous draft issued by the European Banking Authority, please refer to our previous OnPoint.

Investors in securitisations subject to the Capital Requirements Regulation should review the RTS carefully to ensure that they understand their due diligence and monitoring obligations prior to becoming exposed to a securitisation.


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Dechert LLP | Attorney Advertising

Written by:


Dechert LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.