On 9 February the Luxembourg Parliament voted into law the Bill of law No. 7825 (the “Bill”) amending the Law of 22 March 2004 on securitisation (the “Securitisation Law”) and certain other laws. The Luxembourg legislator wishes to offer new opportunities for market participants to accomplish securitisation transactions within a new framework with clear conditions and combining flexibility and legal certainty.
The Bill clarifies the current legal framework and adapts it to the requirements of the securitisation market with a view to strengthening the position of the Luxembourg market as a leading European market for securitisations. It does this by clarifying and broadening the way a securitisation undertaking can obtain financing, give more flexibility to granting security interests, permit an active management of certain securitised assets, clarify existing rules (including accounting rules) as regards compartmentation and adding additional corporate forms for securitisation companies.
For a more detailed view of the amendments to the Law, please click here .