INTERNATIONAL: IOSCO Publishes Review of Implementation of Incentive Alignment Recommendations for Securitisation

Thursday September 3 2015

The Board of the International Organization of Securities Commissions (IOSCO) has published its final report on the Peer Review of Implementation of Incentive Alignment Recommendations for Securitisation, which describes the implementation progress made by 25 jurisdictions in adopting legislation, regulation and other policies in relation to incentive alignment in securitisation.

This report responds to a request from the G20 Leaders in September 2013 for IOSCO to conduct a peer review on the implementation of incentive alignment regimes, including risk retention requirements. IOSCO published the Incentive Alignment Recommendations in November 2012, as part of its final report on Global Developments in Securitisation Regulations.

The report covers the three Incentive Alignment Recommendations in the 2012 report, which call for national authorities to:

• evaluate incentives across the securitisation value chain, formulate and implement approaches to incentive alignment (Recommendation 1);
• set out the elements of the incentive alignment approach, including risk retention (Recommendation 2); and
• seek to minimise the potentially adverse effects to cross-border securitisation transactions resulting from differences in approaches to incentive alignment and risk retention (Recommendation 3).

The Review reports progress in implementation as of 30 April 2015 (the reporting date).

Click on the link above for further details.