On Jun. 12, 2025, EFTA said EEA committee decision enters in force Aug. 1, 2025.
On Jun. 3, NOR GVT issued EEA note on performance-related triggers.
NOR GVT issued EEA note on STS performance-related triggers in Reg 2024/920.
Follows EC Mar. 2024 issued Reg 2024/920 of Dec. 13 in the EU OJ, see #148462.
Overview
Regulation in force in EU, main SR entered into force in EU on Jan. 1, 2019.
Under consideration by the EEA/EFTA states for inclusion in the EEA Agreement.
Rules for standardization of securitizations in art 26c SR as amended by Reg 2021/557, from n5 follows losses must be distributed among investors per priority of tranches.
As installments are paid on tranches, any collateral provided by investors must be repaid to them in the same order of magnitude as the installments.
Sequential amortization to be applied to all tranches to determine amount outstanding on tranches on each payment date; transactions with no payment sequential priority shall include triggers related to performance of the underlying exposures.
That performance leads to prioritization of payments and converts amortization into sequential payments according to the order of priority.
Minimum requirements for performance-related triggers are in para 3 of art 26c n5.
Reg 2024/920 is drawn up on the basis of that article and provides supplementary rules on performance-related triggers, including calibration.
When included in EEA Agreement, implemented in NOR law by incorporation into regs.
The regulation, not expected to have significant consequences for companies or authorities, is EEA-relevant and acceptable.
Sep. 2024 EEA Adopted Decision
On Sep. 24, 2024, EEA JC issued Decision of the EEA Joint Committee No 216/2024 of Sep. 23, 2024, amending Annex IX (Financial services) to the EEA Agreement.
Implementation of Regulation on STS performance-related triggers in EEA Agreement.
In force on Sep. 24, 2024 provided all notifications of art 103(1) of the EEA Agreement have been made; or on the day of application of Dec 145/2024 of Jun. 12, 2024.
Dec. 2024 Official Journal
On Dec. 19, 2024, EEA JC issued Dec 216/2024, of Sep. 23, in the Official Journal.
Jun. 2025 Constitutional Requirements Met
On Jun. 12, 2025, EFTA said EEA committee decision enters in force Aug. 1, 2025.
