IOSCO has published a report setting out results of a peer review of the implementation of the incentive alignment recommendations for securitisation, which IOSCO published in 2012. The three incentive alignment recommendations call for national authorities to:
- evaluate incentives across the securitisation value chain, formulate and implement approaches to incentive alignment;
- set out the elements of the incentive alignment approach, including risk retention; and
- seek to minimise the potentially adverse effects to cross-border securitisation transactions resulting from differences in approaches to incentive alignment and risk retention.