New rules will modify regulatory capital requirements for securitisation positions and unify risk retention practices.

By year end, the European Commission (the EC) is expected to publish two new EU regulations in the Official Journal of the European Union that will enter into force on the twentieth day following publication. The first regulation (the Securitisation Regulation) will set out substantive criteria for simple, transparent, and standardized securitisations and will unify the criteria for risk retention, due diligence, and disclosure. The second regulation (the CRR Amendment Regulation and, together with the Securitisation Regulation, the Securitisation Regulations) will amend Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms (as amended by the CRR Amendment Regulation, the Capital Requirements Regulation or the CRR). The date of application of both regulations is set to be January 1, 2019.