IOSCO Report Confirms Progress Made by Jurisdictions in Implementing Incentive Alignment Recommendations

In a new report, IOSCO summarized the progress made by 25 jurisdictions in adopting legislation, regulation and other policies that implement IOSCO's 2012 incentive alignment recommendations for securitization.

The new report was undertaken in response to a September 2013 request from G20 Leaders that IOSCO conduct a peer review on the implementation of incentive alignment regimes, including risk retention requirements. The report covers three Incentive Alignment Recommendations that were covered previously in the 2012 report titled Global Developments in Securitisation Regulations.

The report finds:

• There has been significant but mixed progress in implementing the Incentive Alignment Recommendations.
• With respect to the entire securitization market, five of the respondents reported completing the implementation of all measures in the Incentive Alignment Recommendations covered by this report.
• European Union jurisdictions and the U.S. generally progressed further in their implementation of the measures than did many jurisdictions with smaller securitization markets.