CLO Regulation in Europe – More Uncertainty?

ECON published a report on June 6, 2016 proposing, inter alia, that the risk retention requirement for securitisations be increased from 5% to 20%.

The suggested amendment, as well as other amendments discussed in this alert memorandum, could have a stifling effect on the EU securitisation market if it were adopted and might prevent the intended post-financial crisis recovery of the market altogether.