Overview -

Numerous regulatory developments were enacted or proposed in the United States and the European Union in response to the financial crisis. Although some of the proposed changes are still in the process of being adopted or implemented in the U.S. (e.g., protections against conflicts of interest in certain securitization that have been in consideration since 2011) or are subject to on-going re-evaluation (e.g., adjustments to the Volcker Rule), new regulatory framework applicable to securitizations appears largely settled for the time being. In the EU, implementation of the new securitization framework on January 1, 2019 marked a significant milestone in the development of a more harmonized regulatory approach to securitization within the EU and the creation of a new "simple, transparent and standardized" securitization label, although many of the detailed technical standards are still in the process of being finalized. Other international developments include the introduction of a risk retention regime in Japan from March 31, 2019.