In brief: New Zealand covered bond legislation received royal assent earlier this week and will come into effect on Tuesday, 10 December, according to the Reserve Bank of New Zealand (RBNZ).

The Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013 was passed by the country’s parliament on 19 November. New Zealand banks have been issuing covered bonds on a contractual basis, but may now only sell covered bonds under a programme registered by RBNZ, subject to a nine month transition period, according to the central bank.

There is a 10% cap on the size of the cover pool as a proportion of a bank’s assets.