Document ID: chunk:federal_register_of_legislation:F2023L01572:reg:11:p5
Version: federal_register_of_legislation:F2023L01572
Segment Type: reg
Provision Reference: reg 11 (pt 5/7)
Character Range: 84512–87324

The decomposition is not treated as a new securitisation transaction. The resulting sub-tranches are not considered resecuritisation exposures solely due to the presence of credit protection.
[20]  For the purpose of paragraph 54, 'wholesale clients' has the meaning given by section 761A of the Corporations Act 2001 (Corporations Act).
[21]  For the purpose of paragraph 57, a liquidity facility that only covers timing mismatches between receipts of funds on underlying exposures and payments on securities issued by the SPV, and is limited and sized as a relatively small proportion of the pool, is not considered 'unfunded support'. Derivatives transactions are not considered unfunded support where they do not provide credit enhancement.
[22]  The deduction does not apply to an originating ADI where the originating ADI includes the underlying exposures in the pool in the calculation of its regulatory capital for credit risk under APS 112 or APS 113.
[23]  Services do not overlap as the cash collateral required to collateralise services provided by an ADI does not relate to any particular facility or other exposure.
[24]  An originating ADI is not required to hold regulatory capital for cash collateral where treated as a securitisation exposure, where the originating ADI includes the underlying exposures in the pool in the calculation of its regulatory capital for credit risk under APS 112 or APS 113.
[25]  An originating ADI is not required to hold regulatory capital for a redraw funding facility to the SPV, where the originating ADI includes the underlying exposures in the pool in the calculation of its regulatory capital for credit risk under APS 112 or APS 113.
[26]  In the absence of a clean-up call, an originating ADI must apply and APRA agree to a fixed period for transition.
[27]  Refer to subsection 11AF(2) of the Banking Act.
[28]  This does not include a member of a group that acts independently on behalf of third parties e.g. statutory funds of life insurance companies, responsible entities, trustees or custodians acting on behalf of beneficiaries or members.
[29]  For the purpose of determining the amount of loss cover held, funded or provided by an originating ADI, an originating ADI may disregard any increase in loss cover arising from its entitlement to residual income.
[30]  In these circumstances, the maximum holding or funding of non-senior securities or holding, funding or provision of other loss positions or credit enhancements specified in paragraphs 1(a) and 1(b) of this Attachment are multiplied by the proportion of assets originated in the pool to the total amount of assets in the pool. The maximum holding or funding of non-senior securities or holding, funding or provision of other loss positions or credit enhancements for a managing ADI is