APRA's discussion paper and proposed new APS 120 provide
some welcome clarification and concessions for Australian market
participants. Released on Thursday 26 November 2015, the proposals
will be open for comment until 1 March 2016. The proposed effective
date for these rules in 1 January 2018.
Amongst the more important proposals are:
De-facto master trust approval
A range of proposed changes seem to point the way for de-facto
approval of master trusts. These changes could provide a further
boost for funding profiles of banks and other authorised
deposit-taking institutions (ADIs) and a likely increase in the
potential size of the term securitisation market because of lower
funding costs for banks and a broadening of the potential investor
base. Master trust structures involve different tranches of notes
being issued through a single trust, all of which are
collateralised by a shared pool of receivables. The new proposals
do not expressly reference master
