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The wait is over – the final EU recast risk retention rules will enter into force on 7 November 2023

EU Securitisation Regulation – the long-awaited final text of the recast risk retention regulatory technical standards (RTS) has been published in the Official Journal on 18 October 2023 and will enter into force on 7 November 2023.

We have reached the finishing line and now have the final text of the EU recast risk retention RTS (see Commission Delegated Regulation (EU) 2023/2175) that will enter into force on 7 November 2023 and will apply to all existing and new securitisations in-scope of the EU Securitisation Regulation.

Therefore, from 7 November 2023, the transitional provisions under Article 43(7) of the EU Securitisation Regulation that provide for continued application of Chapters I, II and III and Article 22 of the pre-2019 risk retention RTS (Delegated Regulation (EU) 625/2014) will fall away.

As expected, there are no material changes between the final text of the RTS and the Commission-adopted version published in July 2023. For additional background on the Commission-adopted version and the related EBA final report, please refer to our earlier briefings linked below.

Updates to the EU risk retention undertakings and disclosure will be required to reflect this development.

We encourage interested clients to contact us with any questions. Click here for contact details of our global securitisation team.

Read here our alert of July 2023 on the Commission-adopted text of the draft RTS.

Read here our alert of May 2022 on the EBA final advice.

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