After a quiet three weeks, the end of January 2019 saw a flurry of activity in the CLO regulatory space with the publication:
- on 29 January, of an update from the Loan Syndications and Trading Association (the “LSTA”) on their engagement with the Japanese Financial Services Agency (the “JFSA”), as regards its proposal to introduce a risk retention rule (the “JRR Proposal”);
- on 31 January, of an opinion (the “ESMA Opinion”) from the European Securities and Markets Authority (“ESMA”) proposing revised regulatory technical standards (the “Revised RTS”) for disclosure under the Securitisation Regulation, along with a related Q&A document (the “Disclosure Q&A”); and
- on 31 January, jointly by the UK Prudential Regulation Authority (the “PRA”) and the Financial Conduct Authority (the “FCA”) of their final direction (the “Joint Reporting Direction”) on reporting of private securitisations.
In this Client Alert, we provide a short update on all three publications, focussing in particular on the ESMA Opinion.
