Basel 2.5 - Securitisation

Managing new regulatory burdens

Banks, building societies and credit unions must be fully compliant with the new APS 120 Securitisation reforms by 1 January 2012.

APRA sees the new APS 120 as a reinforcement of existing principles and has reiterated their expectation that banks, building societies and credit unions prudently manage risks arising from exposure to securitisation at all times.

The amended APS 120 covers ALL exposures to securitisation regardless of whether they arise through origination and arranging deals, providing facilities and derivatives to a securitisation transaction or through investment in securities issued by a securitisation transaction (held in either the trading or the banking book).

The attached document on securitisation reforms identifies the key changes and some of the resulting impacts.