Securitisation Regulation: Application of Disclosure Requirements to Non-EU CLOs

The EU Securitisation Regulation (the “Securitisation Regulation”) will apply to securitisations issued on or after 1 January 2019 and will introduce a number of changes to the European risk retention regime for CLO transactions. In particular, Article 7 of the Securitisation Regulation will increase the scope and nature of the transparency and disclosure requirements applicable to originators, sponsors and issuers of CLO transactions. With the application date of the Securitisation Regulation fast approaching, we explore in this briefing the impact the Securitisation Regulation will have on CLOs that have a non-EU issuer and a non-EU manager (and neither of which are a subsidiary of an EU bank) (a “Non-EU CLO”) and, in particular, the extent to which those Non-EU CLOs will need to comply with the disclosure requirements of the Securitisation Regulation to be able to market to EU investors.

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