On 7 July 2014, the EBA published final Guidelines on significant credit risk transfer for securitizations. Under the CRR, national regulators can decide, on a case-by-case basis, that a securitization does not result in a significant transfer of credit risk to third parties. National regulators can also decide that significant risk has transferred for an originator institution if it can demonstrate that the reduction of own funds requirements achieves such a transfer. The EBA is required to monitor the use of these provisions, prepare guidelines and advise the European Commission by 31 December 2017 on whether technical standards are required in this area. The Guidelines, which apply to originator institutions and national regulators, provide direction on the assessment of significant transfer of credit risk and will apply six months after adoption of the Guidelines.

The EBA Guidelines are available at:

http://www.eba.europa.eu/documents/10180/749215/EBA-GL-2014- 05+Guidelines+on+Significant+Risk+Transfer.pdf.