European Union: Securitization & Structured Finance

The European Commission has proposed significant amendments to the EU's securitisation framework, aiming to remove barriers in the market while maintaining investor protections. With the Council and Parliament having finalized their positions, trilogue negotiations are now underway under Ireland's EU Presidency, testing the balance between market liberalization and regulatory safeguards.

Andrew Caruana Scicluna hosts Riccardo Conti of Fume and Stephen Gauci Baluci of CC Fund Services Limited to examine whether fund tokenisation delivers on its promises of liquidity and efficiency, or simply redistributes existing risks. The discussion explores how atomic settlement, fractional ownership, and smart contracts may reshape the roles of transfer agents, fund administrators, and settlement teams in daily operations.

Luxembourg has introduced a landmark legislative reform allowing unregulated alternative investment fund (AIF) limited partnerships to adopt multi-compartment structures. This development enables fund sponsors to consolidate multiple investment strategies, investor classes, and fund-level structures within a single limited partnership, significantly reducing complexity and administrative burden while maintaining creditor protection and investor segregation.

Advocate General Kokott has delivered her Opinion in Commission v Luxembourg (Case C-138/24), recommending that the Court of Justice of the European Union (CJEU)...

Luxembourg is modernizing its securitisation framework through two key legislative reforms: the Draft Securitisation Bill and the Deferred Capital Law. These amendments expand financing options for securitisation vehicles, permit active management of broader asset classes in private transactions, and allow deferred payment of share capital for SARLs, potentially reducing incorporation timelines from months to days.

The Luxembourg government has filed a bill of law proposing targeted amendments to the country's securitisation framework, building on 2022 reforms to address evolving market practices. The proposed changes focus on expanding financing methods, strengthening insolvency protections, enabling compartment-to-compartment investments, broadening security package flexibility, refining active management rules, and clarifying statutory subordination provisions for securitisation vehicles.

This April 2026 edition of Funds Focus examines critical regulatory developments affecting asset management and investment funds, including the Central Bank of Ireland's fund authorisation workshop, new tokenisation guidelines, and the UK's Consumer Composite Investments regime. The update provides fund managers with essential compliance deadlines, regulatory findings on outsourcing risks, and insights from Ireland's inaugural Savings and Investment Forum.

On March 27, 2026, the legislative decree (the Decree) transposing Directive (EU) 2024/927 (the so-called AIFMD2) was published in the Official Gazette, introducing significant amendments...

ESMA withdraws market data guidelines as new regulatory standards take effect, while AMLA assumes full AML/CFT oversight from EBA. How will these regulatory shifts reshape compliance frameworks for financial institutions across the European Union?