In December 2022, the RBA introduced requirements for ABS to include robust, reasonable and fair BBSW fall-back language for any security seeking repo eligibility with the bank. Outstanding ABS were granted an exemption for this new requirement.
Following representations from the industry the RBA has announced an
exemption will be also be granted to issuances of ‘refinancing notes’ on or after 1 December 2022, whose proceeds are used to repay existing notes first issued before 1 December 2022 from marketed closed-pool ABS trusts.
The ASF encourages all issuer members to adopt BBSW fallbacks that are robust, reasonable and fair as a matter of prudent risk management for all stakeholders in securitisation transactions.
Additionally, the RBA has also announced today that the
minimum notice period for legal document changes for asset-backed securities has been extended to 20 business days from 10 business days. The RBA advise that the motivation for this change is the increasing volume of legal document change applications that the RBA has been experiencing.
Further information is available from the RBA’s
Securitisation Industry Forum website. The RBA’s
eligible securities and
Asset-backed Securities Maintenance web pages have also been updated today to reflect these decisions.