Australia asset securitization market inspiration

Australia, as a common law country, not for asset securitization transactions in the basic law. Related to asset securitization transaction, in particular the transfer of assets, such as legal issues, mainly based on English common law procedures. In the establishment of the SPV, Australia, and there are no special laws and regulations, but by a different form of SPV, respectively, follow the "Company Law" and "Trust" and other laws. In the transfer of debt, as long as there is no provision to prohibit the transfer of the claims, which agreed to transfer without the consent of the debtor, but in order to claim the legal effect of a more transfer of complete, the need to inform the debtor. For mortgage securities, to the need for the Government's land registration agencies of the creditor to register. The sale of major assets based on the real Department of English common law on the sale of financial assets, the sale of real assets can be achieved with the sponsors of the bankruptcy isolation. Claims have not yet formed a true sale of assets can be. With regard to taxation, taxation of the SPV, the SPV according to the organization, the application of the respective company or trust of the tax provisions. Trust for the type of SPV (that is, SPT), if all of the revenue from the trust vested in the immediate beneficiaries of all, trust no right to deal with its own revenue, then the SPT can be identified as a "pass" (pass through) the Institutions, do not pay taxes as the main, be exempt from paying income tax. If the trustee is free to decide whether the accumulation of trust income or cash flow to reinvest, then the trust will be in accordance with the general provisions of the income tax to pay income tax. In the establishment of the Trust, the creditor will have a link, such as stamp duty, but many of Australia's state government are carried out from this. In addition, Australia has the goods and services tax (GST), in securitization transactions in the transfer of assets to the SPV without charge GST, for asset management services, trust management, transaction management services for a range of related services provided by the securitization By the needs of service providers to pay GST, but the cost of such revenue through the arrangement agreement passed on to the SPV. In accounting, although Australia's accounting standards are not directly related to the accounting treatment of securitization, but Australia generally accepted international accounting standards. The accounting treatment of securitization, the majority of accountants to adopt International Accounting Standards No. 39 (IAS39). International Accounting Standards Board explained Notices No. 12 (SIC12) pointed out that if the promoter for the SPV has substantial control, SPV will be merged into the sponsor's statements. Australian Accounting Research Foundation (AARF) under the emergency group (UIG) in July 1999 issued a notice UIG28 relative SIC12, to reduce the need for securitization of the combined statements of the SPV range of conditions. Australian Accounting Standards Board (AASB) is developing a statement on the merger guidelines. Fourth, the practice of operation Australia's commercial banks and housing loans is to launch securities transactions in the main, the current RMBS remains Australia's leading securities market varieties. Queensland, to the Suncom Metway Bank, for example, we have Australia's commercial banks, asset securitization operations carried out to introduce. Suncom Metway Bank is Australia's sixth largest bank, 380 million of assets, 227 branches. The bank's credit assets constitute 40% of business loans, 60% for housing loans, personal housing mortgage loans about 200 million Australian dollars or so; constitute a source of funds in the retail channel (deposits) and wholesale channels (Securities Issue, and so on) each accounted for 50%. SuncorpMetway in the securitization of credit assets are very active. Since 1999, Suncorp Metway began issuing Apollo series of RMBS products, a total of 10, 2005 issue of the two, a total of 3.36 billion Australian dollars. The bank issued securities products have been widely welcomed by investors at home and abroad. The bank has a dedicated team of securities, each year the Board of Directors in accordance with the plan formulated by the organization of the securities business line of credit, credit, finance, accounting and other departments together. The trip securitization, according to the team to the person in charge, the bank engaged in credit asset securitization business, the main purpose is two-fold. The first is to broaden the financing channels, asset-backed securities the banks have a more diverse group of investors, such as through offshore transactions in securities, attracted 66 international investment institutions; Second, the release of regulatory capital, in Australia on APRA Capital adequacy ratio (CAR) is the regulatory requirements of 9%, SuncorpMetway of the CAR's internal control requirements of 10%, CAR's current value is 10.8 percent, a decrease of Form securitization of risk assets, you can achieve the purpose of the release of capital . According to reports, Suncorp Metway's securitization transaction costs for 35bp, and 28bp release of capital can save the cost of capital, so the actual cost of the Securities 7bp. Australians have the money to buy a house of culture, the mortgage default rate is very low, typically between 0.4% -0.5%. Selected as the bank's asset securitization pool table with the quality of assets is consistent quality. On the securitization transaction costs, with Suncorp Metway Bank in 2005 issued a series of Apollo's RMBS transaction, for example, the cost structure is as follows: the investors to spread 21bp, the cost of the Trust 4bp, the cost of rating 2bp, service charges 3bp And custodial fees funds 3bp, legal fees 1bp, cost accounting 0.5bp, mortgage insurance 5bp, the transaction fee arrangements 9bp (3bp /). Suncorp Metway in securities transactions, the main problem is investor relations, the key is to do a good job in investor education, providing high-quality information, and investors and maintain good communication. In the securitization of credit enhancement products, mainly in three areas. First, on the basis of the credit assets of insurance, such as the purchase of mortgage insurance, when the breach occurred, paid for by the insurer; Second, is secured asset-backed securities, market professionals such as financial products, MBIA Guarantee Agency To carry out such operations, but only the general security level of priority securities; the third is to be retained by the promoter of the rights and interests of grade securities, other investors with the level of credit enhancement.