Current Year Submissions
The following is a repository of recent submissions made by the ASF on pertinent policy and regulatory matters of interest to the Australian securitisation market.
Submissions to Australian policy and regulatory agencies
- Submission to APRA's draft revised Prudential Practice Guide APG 120 Securitisation (PDF)
20 December 2016
- Submission to APRA's Prudential Standard CPS 226 Margining and risk mitigation for non-centrally cleared derivatives (PDF)
31 October 2016
- Submission to Treasury proposal to amend insolvency laws (PDF)
27 May 2016
In April the Commonwealth Treasury released a proposal paper that, among other things, proposed reforms to introduce an ipso facto moratorium. An "ipso facto" clause is a contractual provision that allows a party to terminate/vary the contract in specific circumstances. The proposed moratorium would prevent termination or amendment of contracts upon a party's insolvency. The measures aim to facilitate an orderly restructure of a failing company and the concern is that those types of ipso facto provisions pull the rug out from under the troubled company.
In a securitisation context, this has implications for the validity of flip clauses, where a defaulting swap provider is subordinated to other creditors in securitisation cash flows by virtue of that default, which typically includes an insolvency event. These clauses would be void under the new proposals.
The ASF submission points out the detrimental impact of the reform on securitisation and covered bond financings.
- Submission to APRA Discussion Paper on margining and risk mitigation requirements for non-centrally cleared derivatives (PDF)
27 April 2016
The ASF made a brief submission to APRA’s consultation on the margin requirements for non-centrally cleared derivatives. The submission seeks to clarifying the wording relating to the exemption of securitisation SPVs from the proposed margin requirements.
- Submission to APS 120 Discussion Paper (PDF)
1 March 2016
After several months of detailed review and discussion amongst its membership on the November 2015 Discussion Paper and draft APS 120, the ASF submitted its formal response to APRA. The ASF looks forward to the opportunity in the coming months to engage with APRA to explain its views to APRA ahead of the finalisation of the new prudential Standard.
Submissions to overseas policy and regulatory agencies
- Submission to Basel Committee on Banking Supervision consultative document on capital treatment for simple transparent and comparable securitisations (PDF)
5 February 2016
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