On 5 June 2014, secondary legislation to the CRR was published which sets out (i) the factors that a national regulator should take when assessing whether to impose an additional risk weight for material infringement of the securitization requirements due to negligence or omission; and (ii) the formula to be used for calculation of an additional risk weight. The secondary legislation comes into force 20 days after publication in the Official Journal of the European Union.
The legislation is available at:
http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2014.166.01.0 022.01.ENG.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.