Risk retention ‘substantially diluted’ for STS proposal

Parliament compromises to pass STS securitisation proposal, but industry is still pessimistic

European parliament
European Parliament: the framework will be voted on at a plenary session, scheduled for January 16

The European Parliament has passed proposals to establish a framework for simple, transparent and standardised (STS) securitisations, after a compromise was struck that reduces the risk retention requirement from previous parliamentary proposals but still represents an increase on the current standard.

"There have been a lot of changes, and the retention provision, which has been the most problematic, has been substantially diluted to something more bearable," says a securitisation industry

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here