Risk retention requirements for originators, sponsors, lenders and servicers

This procedure details specific risk retention requirements for entities involved in securitisation. It aims to ensure that originators, sponsors, lenders, and servicers maintain a stake in the securitised assets, promoting responsible lending and investor protection.

This regulation affects financial institutions engaged in securitisation activities. It clarifies the standards for risk retention, impacting how financial products are structured and marketed, and enhancing transparency in financial markets.