The Australian Prudential Regulation Authority (APRA) today released for industry comment a draft prudential standard on Funds Management & Securitisation for all Authorised Deposit-taking Institutions (ADIs).

When finalised the standard will replace the existing Prudential Statement on Funds Management and Securitisation (PS C2) for banks, and the FI Scheme Prudential Notes for Securitisation, Funds Management and other Marketing Activities for building societies and credit unions.

The draft standard sets down prudent practices to be observed by ADIs in their involvement with funds management and securitisation activities, and the capital treatment to be accorded depending on the nature and extent of the involvement.

The draft standard is consistent with the existing requirements. Securitisation programs previously approved will be deemed compliant when the new standard comes into effect.

The draft standards and accompanying guidance notes, as well as PS C2 and the FI Scheme Prudential Notes, are available on the APRA website, www.apra.gov.au

Comments are invited on the proposed standards and guidance notes by 14 June 2000, and may be addressed to:

Mr Brian Gray
Executive General Manager
Policy, Research and Consulting
Australian Prudential Regulation Authority
GPO Box 9836
Sydney NSW 2001

Alternatively email ADIstandards.Securitisation@apra.gov.au

For further information:

Gloria Peterson
Public Affair Manager
02 9210 3385