The Australian Parliament passed the Banking Amendment (Covered Bonds) Bill 2011 on 13 October. As the Act commences the day it receives Royal Assent, which should be soon, Australian financial institutions will not have to wait much longer before they can issue covered bonds.
As we have noted previously, some important details of the covered bonds regime are being left to prudential guidelines from APRA and regulations. Until we see them, we will not have a complete picture of the regulatory landscape. We will keep you informed as and when we see further developments.
STOP PRESS: We've just learnt that the Bill was given Royal Assent today, so these changes are now law.
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- Final version of Government's covered bonds bill has some changes
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- Australian covered bonds coming soon
- Australia opens the door to covered bonds
Clayton Utz communications are intended to provide commentary and general information. They should not be relied upon as legal advice. Formal legal advice should be sought in particular transactions or on matters of interest arising from this bulletin. Persons listed may not be admitted in all states and territories.