Regulatory reform: European Union (EU) Securitisation Regulation - J.P. Morgan Asset Management
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Regulatory reform: European Union (EU) Securitisation Regulation

Effective 1 January 2019, the European Union (EU) Securitisation Regulation is designed to create a standardised securitisation framework for in-scope European securitisations. The new regulation will affect UCITS management companies, including J.P. Morgan Asset Management.

To explain more about the EU Securitisation Regulation and what it means for investors in J. P. Morgan Asset Management’s UCITS funds, we’ve designed an easy-to-use guide that addresses the key questions.

Requirements

The EU Securitisation Regulation enforces quantitative and qualitative due diligence requirements on Institutional Investors, as defined by the regulation. These requirements must be met for an in-scope securitised position to be eligible to be purchased by a UCITS vehicle, or on behalf of other Institutional Investors.

The regulation includes transitional provisions that limit its impact on UCITS management companies. Based on guidance we have received from external sources we understand the due diligence requirements will only apply to UCITS management companies in relation to investments in securitisations issued or amended on or after 1 January 2019.

Therefore, we are of the view that our UCITS funds are not required to apply the mandated due diligence requirements (applicable to in scope securitisations) to either those securitisations purchased up to and including 31 December 2018, and those that are purchased after that date but which were issued on or prior to 31 December 2018 (and not amended post that date).

Further information

Our guide to the EU Securitisation Regulation contains more details on the impact of the new rules on J.P. Morgan Asset Management’s UCITS funds.



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The information provided should not be treated as legal guidance, opinion or advice and cannot be relied upon for investment purposes. The recipient must make an independent assessment of any commercial, legal, credit, tax, regulatory and accounting issues and determine with its own professional advisors any suitability or appropriateness implications to any assets or funds referenced herein in the context of their particular circumstances. Reliance upon this information is at the sole discretion of the reader. Any research reflected in this briefing has been obtained and may have been acted upon by J.P. Morgan Asset Management for its own purpose. The results of such research are being made available as additional information and do not necessarily reflect the views of J.P. Morgan Asset Management. Any opinions, statements of interpretation, or views regarding regulatory impact, unless otherwise stated, are J.P. Morgan Asset Management’s own at the date of this correspondence. They are considered to be reliable at the time of writing, but may not necessarily be all inclusive and are not guaranteed as to accuracy. In addition, they may be subject to change without reference or notification to you. The information made available is specific to the recipient and must not be distributed to any other person or institution, or replicated in any form without the prior written consent of J.P. Morgan Asset Management.

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