Archived Submissions | 2016

Submissions to Australian policy and regulatory agencies

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.

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. 

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

What's On

Upcoming courses, seminars and networking opportunities for your professional development



Australian Securitisation Conference

Hilton, Sydney



Women in Securitisation Conference Breakfast




Securitisation Professionals course




Women in Securitisation networking event




Securitisation Fundamentals course




Securitisation Professionals course


Australian Securitisation Journal

The Australian Securitisation Journal (ASJ) is the official journal of the Australian Securitisation Forum. The ASJ is published by KangaNews on a semi-annual basis.

Read the official journal of the ASF

Market snapshot

View a snapshot of the Australian structured credit market, courtesy of Macquarie Debt Markets Research. Key data is refreshed on a monthly basis.

View the latest market activity