Clifford Chance

New Challenges: The impact of recent regulation affecting international structured debt transactions

9 June 2014

The period since the financial crisis has seen a torrent of new regulation and legislation cascading through the financial markets. No corner of the industry remains entirely untouched and securitisation and structured debt is no exception – indeed it is among the most affected. There is a whole raft of regulation and rule-making directed specifically at securitisation, including in Europe risk retention rules, new disclosure and dual rating requirements under CRA3, new data templates required for collateral eligibility by the Bank of England and the European Central Bank and much more besides. In addition, by virtue of its cross-disciplinary nature structured debt frequently gets caught in the crossfire without being a prime target, and industry consequently spends a great deal of time fighting for the exclusion of securitisation from regulation and legislation where it was never really contemplated to be included in the first place. Examples of this include regulation as an alternative investment fund, clearing and margining rules under EMIR and the Volcker Rule in the US (including its extra-territorial effect).

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