Although the legislative process is now complete, the process of structuring CLO transactions to comply with the EU risk retention rules has just begun.

The EU’s risk retention framework will come into effect next week, marking the end of a long legislative process. The new capital requirements regulation (CRR) of the European Union (EU) and the accompanying directive became effective on 1 January 2014. The related Regulatory Technical Standards (RTS, together with the CRR, the CRR risk retention rules) will come into effect on 3 July 2014.