On 31 March 2025 the Joint Committee (the "JC") of the European Supervisory Authorities (the "ESAs") released a report (the "JC Report") on the functioning of the European Securitisation Regulation (Regulation (EU) 2017/2402) (the "EUSR"). The JC Report includes, among other things, an assessment of whether the EUSR has achieved its original policy objectives since implementation in 2019 and legislative recommendations to the European Commission (the "Commission").
In this Client Alert we focus on statements made in the JC Report regarding whether CLO originator vehicles (including collateral management vehicles) ("CLO Originators") satisfy the "not a sole purpose originator" requirementfor the purposes of determining eligible retention retainers under the EUSR, and the wider ramifications of those statements for the CLO and structured credit markets. In doing so, we identify several unintended and problematic consequences for such markets arising from the JC Report's guidance on CLO Originators.
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.
