The Report highlights that institutions are generally undertaking appropriate actions to comply with such requirements, and only a very limited number of non-compliant institutions have been reported since EU rules were introduced in 2011. In total, 10 cases of non-compliance with risk retention and due diligence have been reported. Sanctions in the form of additional risk weights as per Article 407 of the Capital Requirements Regulation (CRR) were applied in one out of the 10 cases.
According to the European Banking Authority (EBA) analysis, it also appears that ensuring compliance with risk retention, due diligence and disclosure requirements has a lower priority in the supervisory processes of Competent Authorities, although this may be partially justified in light of the expectations on the development of a the new securitisation framework at EU level.
Based on the findings of the analysis, the EBA has identified a number of general supervisory best practices to guide Competent Authorities in their supervisory assessments of compliance with the risk retention, due diligence and disclosure requirements in their jurisdictions.
The report also assesses how the EBA recommendations on enhancing regulation of risk retention, due diligence and disclosure rules, as specified in the EBA Opinion of December 2014, have been taken on board in the proposals of the new securitisation framework issued by the Commission in September 2015. The EBA notes with satisfaction that all the EBA recommendations specified in the EBA Opinion have been taken on board (two of them partially).
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