APRA launches covered bond and securitisation consultation
The Australian Prudential Regulation Authority has launched a consultation on proposed changes to prudential standards that it plans to implement early next year, following the passage of Australian covered bond legislation.
APRA has already amended Prudential Standard APS 120 Securitisation to remove a prohibition on authorised deposit taking institutions (ADIs) from issuing covered bonds and had said that it would soon work on a new Prudential Standard, APS 121 Covered Bonds.
The regulator has published a draft of APS 121 and accompanying discussion paper, and has invited submissions on its proposals, with a view to implementing the new regulations in early 2012.
APRA is also discussing changes to APS 120 that deal with the prudential treatment of holdings of subordinate tranches of securitisations. It plans to incorporate these into APS 120 and that they take effect on 1 January 2012.
The relevant documents can be found here:
