Both Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 (the "CRR") and Directive (EU) 36/2013 of the European Parliament and of the Council of 26 June 2013 (the "CRD IV"), implementing Basel III, are applicable as of 1 January 2014. CRR has direct effect. CRD IV needs to be implemented in member states of the European Union. Although slightly delayed, the Belgian legislator implemented CRD IV through the Act of 25 April 2014 on the status and supervision of credit institutions (the "Banking Act") which entered into force on 7 May 2014. In the Netherlands the CRD IV Implementation Act (Implementatiewet richtlijn en verordering kapitaalvereisten) entered into force on 1 August 2014 ("CRD IV Implementation Act").

Pursuant to the Banking Act, the Belgian legislation complies with CRD IV and anticipates the implementation of the principles included in the Banking Recovery and Resolution Directive (EU) 2014/59 of the European Parliament and of the Council of 15 May 2014 (the "BRRD") (see the newsletter). The Banking Act contains specific provisions relating to the treatment of securitisation exposures, subject to the provisions of CRR. The credit institutions must ensure that the risks generated by securitisation operations to whom they are a party as an investor, an originator or a sponsor, including the reputation risks related to complex structures or products, are assessed and treated in the framework of appropriate risk-sensitive policies and methodologies. These policies and methodologies must ensure that the credit institution has fully taken into consideration the economic rationale of the operation and the risks related thereto. In addition, a credit institution acting as originator in a securitisation operation containing early amortisation provisions in favour of the investors, must have a liquidity plan in place that enables it to perform all planned and anticipated redemptions. 

In the Netherlands, in addition to the CRD IV Implementation Act, the CRD IV Implementation Decree (Implementatiebesluit richtlijn en verordering kapitaalvereisten) entered into force on 1 August 2014. Moreover, to give further substance to CRR and CRD IV, the Dutch Central Bank enacted the Decree specific regulations (Besluit specifieke bepalingen), which entered into force on 1 January 2014. Pursuant to the CRD IV Implementation Decree and the Decree specific regulations, inter alia, Decree securitiations Wft 2010 (Regeling securitisaties Wft 2010) and section 10.4 (Securitisatie) of the Decree Prudential Rules Wft (Besluit prudentiele regels Wft) have been deleted. The BRRD will be implemented in the Netherlands by means of an implementation act, the draft version of which is expected to be published beginning/mid October 2014.