On 17 June 2025, the European Commission (the “Commission”) published a significant proposal to amend Regulation (EU) 2017/2402 (the “EU Securitisation Regulation”) (the “SECR Amending Proposal”), as part of its efforts to “relaunch” the European securitisation market by making the EU securitisation regulatory framework less burdensome and more principles based.
This Client Alert summarises key aspects of the SECR Amending Proposal, focusing on its potential ramifications for the European CLO market. While the SECR Amending Proposal seeks to cut red tape and simplify investor diligence and transparency requirements in the European securitisation market, there are several unclear aspects and certain measures which appear to place additional burdens on CLO market participants. Such measures suggest the proposal may fail to meet its stated objective of a market relaunch.
The SECR Amending Proposal is available here.