At the trilogue meeting held yesterday, May 30th, an agreement in principle was reached as between the Council and the Parliament, according to a Parliament press release.
Although the precise details remain sketchy and the final text still needs to be approved at the final trilogue scheduled for 16th June, two items will undoubtedly be welcomed by issuers and investors. These are the maintenance of retention levels at 5% and the use and regulation of third parties to assist with the verification of the STS status of issuance. With some of the agreements of principle on issues such as issuer liability that had been mentioned following earlier trilogues - and subject to solutions to a number of highly technical issues - this agreement opens up the prospect of a beneficial and workable framework for the European securitisation market.
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