On 9 February 2022, the Luxembourg Parliament has approved a new law amending the law of 22 March 2004 on securitisation. The new law will enter into force after publication in the official journal, which should occur in the course of February.
The new legislation has successfully implemented the feedback from market participants. Although the Luxembourg legal framework has proven so far to be sound and well-functioning, the new framework can even further increase the number of securitisation transactions using Luxembourg vehicles. Key changes include the diversification of financing instruments, active management of CDOs/CLOs and adjustments to the corporate governance of the securitisation framework.
The GSK Update provides a detailed overview of the new legal framework.
Valerio Scollo, LL.M. (NYU), LL.M. (NUS)