Today, the law modifying the law dated 22 March 2004 on securitisation (the “Securitisation Law”) was adopted (the “Law”).
The Law provides with some adjustments of the Securitisation Law in order to improve the legal certainty by clarifying certain changed market practices, and to increase the flexibility of the Luxembourg regime towards other jurisdictions. New opportunities are created for the active management of securitisation vehicles. New or improved tools are now available to efficiently structure securitisation. These adjustments may also provide workable solutions to the interest deduction limitation rules conundrum faced by many existing securitisation vehicles.