European regulators have taken a strict approach to retention rules for issuers of asset-backed securities. The changes have caused difficulties for Australian structured-finance issuers, which rely on European investors for much of their funding. "The skin-in-the-game issue remains tricky," said Alex Sell, chief operating officer at the Australian Securitisation Forum. "Our main concern is not with the local regulator -- which seems to be on the same page as us -- but with regulation coming out of Europe. Australian ABS issuers rely on Europe for at least 60% of their funding, so it is the European regulators that we have to convince."