Document ID: chunk:federal_register_of_legislation:F2023L01572:front:0:p7
Version: federal_register_of_legislation:F2023L01572
Segment Type: other
Provision Reference: 
Character Range: 16381–19271

seven or more directors;
(e)          act, or allow any of its directors, officers or employees to act, in any circumstances as a trustee of an SPV, or in any similar role. The trustee must not be part of the group, as defined in Australian Accounting Standards, to which the ADI belongs; or
(f)           be liable for the obligations and liabilities of the SPV, particularly in the event the SPV incurs losses.

Disclosure
17.         An originating ADI must ensure that there is clear and prominent disclosure to investors in a securitisation of the nature and limitations of the ADI's obligations arising from its involvement in a securitisation. Documentation or marketing of a securitisation must not give the impression that recourse to the ADI would extend beyond any specific undertakings to which the ADI has legally committed itself.
18.         It must be clearly disclosed that an investment in the securitisation does not represent a deposit with, or other liability of, the originating ADI.

Exposures transferred in a securitisation
19.         An originating ADI must not maintain effective or indirect control[8] over exposures transferred to an SPV. An originating ADI must not, except in the case of a self-securitisation:[9]
(a)          be obliged to retain the credit risk of the exposures; or
(b)          be obliged to repurchase the exposures out of the pool held by the SPV, except where an ADI is required to repurchase (or replace) an exposure as a result of a representation or warranty under paragraph 6(b) of Attachment A and paragraph 5(b) of Attachment B, where relevant.
20.         The issued securities must not be obligations of the ADI. Investors in a securitisation may only have a claim on the relevant pool and any applicable facilities of the SPV.[10]
21.         The holders of the securities issued by the SPV must have the right to pledge or exchange them without restriction, other than restrictions that are necessary for statutory compliance.
22.         An originating ADI must not, except in the case of a self-securitisation:[11]
(a)          alter the underlying exposures such that the pool's credit quality is improved;
(b)          increase a retained first loss position or provide additional credit enhancement after the inception of the transaction;
(c)          increase the yield payable to the investors in a securitisation in response to a deterioration in the credit quality of the pool; or
(d)          in the case of a synthetic securitisation, limit the credit protection or credit risk transference[12] or increase the ADI's cost of credit protection in response to deterioration in the credit quality of the pool.
23.         Representations and warranties provided by an ADI concerning the exposures transferred in a securitisation must:
(a)          be provided at the time the exposures are transferred to the SPV;
(b)