On 1 January 2019 the EU Securitisation Regulation began to apply. The Regulation is both complex and far-reaching, and contemplates serious consequences for failure to comply. It creates many pitfalls for the unwary because its scope includes transactions that may not be thought of by the parties as "securitisations" and entities that were not previously subject to regulation of securitisation activities. It also has a very wide geographic scope of application because its broadly applicable due diligence rules mean non-EU securitisations will need to consider compliance as well to the extent they wish to market to EU institutional investors.
In this briefing, we provide an overview of the Regulation, with a focus on the situations where a transaction may be brought into scope. We also provide a brief overview of the consequences of being brought into scope.