With these regulatory changes, SCs / RCs will need to focus on actual redeeming of security receipts as it is no longer possible for them to base their profit model on the basis of management fees.
In the near term, SCs / RCs may find it difficult to align their pricing to the expectations of the selling banks and the selling banks also may not have yet reconciled to a realistic sale price expectation for the assets that they want to offload, resulting in the reduction in sales.