This is an update of an article originally published on 5 June 2023 as part of our publication "Securitisation markets and regulation: choosing different paths?", accessible here.

It is almost fifteen years since the EU’s risk retention (or “skin-in-the-game”) rules were developed in response to concerns that interests of investors and originators were insufficiently aligned. In that time, the market has adapted and developed a number of solutions to adhere to the rules in situations where there may no longer be a substantial entity that was involved in the creation of the exposures to perform the risk retention function. 

In this article, we look at some of those solutions and the legal issues arising from them. 

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