8/30/2023 0 Comments Football manager 2008 flex skinHe added that this is not the case with the originator platforms seen so far. “It essentially prohibits you from being an eligible retainer if your sole purpose is securitisation,” said Ranero, whose firm was one of five that lobbied regulators on behalf of the industry. The framework now adopts some of the language proposed by managers while introducing an anti-abuse “originator for a day” provision. The plans triggered debate and prompted the industry to lobby regulators for more flexible rules. “The draft in August was problematic and probably would have shut down originator-type arrangements,” said Franz Ranero, partner at Allen & Overy. The EU has long struggled to strike a regulatory balance that allows for separate risk retention entities, while also barring shell vehicles set up only to circumvent the rules.Įarlier this year, leaked drafts of the proposed rules suggested the EU was heading towards closing the third-party loophole - effectively killing off the originator model. “I expect the rules to continue to change because every time the EC has opened the door, they’ve tried to close it again.” YEARS OF UNCERTAINTY “Ultimately, if you’re doing something to get around regulation and it has divorced the credit decision-making from the capital at risk, then I don’t think that type of structure is going to survive,” said a CLO investor. While this is good news for the growing number of CLO managers that have used this “originator” structure, some market players do not think the model is sustainable.
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