{"id":"F2019L00612","name":"Australian Business Securitisation Fund Investment Mandate Directions 2019","slug":"australian-business-securitisation-fund-investment-mandate-directions-2019","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":440039,"registerId":"F2019L00612-fast-fetch-1775955828328","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Australian Business Securitisation Fund Investment Mandate Directions 2019","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\n---\n\n?xml version=\"1.0\" encoding=\"utf-8\" standalone=\"no\"?>\n\n![Commonwealth Coat of Arms of Australia](image.001.jpeg)\n\n \n\nAustralian Business Securitisation Fund Investment Mandate Directions 2019\n\nI, Josh Frydenberg, Treasurer, make the following directions.\n\nDated 10 April 2019\n\nJosh Frydenberg\n\nTreasurer\n\n \n\n \n\n \n\n \n\n \n\nContents\n\nPart 1—Preliminary\n\n1 Name\n\n2 Commencement\n\n3 Authority\n\n4 Definitions\n\n5 Purposes of instrument\n\nPart 2—Directions\n\n6 Investment strategies and policies\n\n7 Investment decision‑making criteria\n\n8 Investment risk and return\n\n \n\nPart 1—Preliminary\n\n \n\n1  Name\n\n  This instrument is the Australian Business Securitisation Fund Investment Mandate Directions 2019.\n\n2  Commencement\n\n (1) Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n \n\n- Commencement information\n- Column 1 Column 2 Column 3\n- Provisions Commencement Date/Details\n- 1. The whole of this instrument The day after this instrument is registered. 16 April 2019\n\n\nNote: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.\n\n (2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.\n\n3  Authority\n\n  This instrument is made under subsection 13(1) of the Australian Business Securitisation Fund Act 2019.\n\n4  Definitions\n\n  In this instrument:\n\nAct means the Australian Business Securitisation Fund Act 2019.\n\nfinancial asset has the same meaning as in the Future Fund Act 2006.\n\nSME securitisation market means the market for debt securities that relate to credit provided to small and medium enterprises.\n\n5  Purposes of instrument\n\n  For the purposes of subsection 13(1) of the Act, Part 2 of this instrument sets out directions about the exercise of the Minister’s powers under section 12 of the Act.\n\nPart 2—Directions\n\n \n\n6  Investment strategies and policies\n\n  In making investments, the Minister must prioritise the following:\n\n (a) investments in underdeveloped sectors of the SME securitisation market;\n\n (b) investments that assist the long‑term development of the SME securitisation market;\n\n (c) investments that encourage investment in the SME securitisation market by the private sector;\n\n (d) investments that are likely to promote competition in the market for providing credit to small and medium enterprises;\n\n (e) investments in debt securities that do not relate wholly or predominantly to credit provided for investments in financial assets or residential property.\n\n7  Investment decision‑making criteria\n\n  In making an investment, the Minister must consider the following:\n\n (a) whether the making of the investment will be consistent with the strategies and policies in section 6;\n\n (b) the potential of the investment to affect other participants or prospective participants in the SME securitisation market, having regard to the strategies and policies in section 6;\n\n (c) if the investment will be made at a rate of return that is less than the market rate—whether such an investment is reasonably required, having regard to:\n\n (i) the strategies and policies in section 6; and\n\n (ii) the other decision‑making criteria in this section;\n\n (d) whether the investment will affect the ability of the Fund to exit the SME securitisation market in the long‑term without causing significant market dysfunction;\n\n (e) whether the making of the investment will be appropriate, having regard to the matters relating to risk and return mentioned in section 8;\n\n (f) whether the making of the investment will be consistent with the Act (including the objects of the Act).\n\n8  Investment risk and return\n\n  In making investments, the Minister must:\n\n (a) ensure that the investments of the Fund have an acceptable but not excessive level of risk, having regard to the objects of the Act; and\n\n (b) aim to achieve over the medium‑term a net financial return on the investments of the Fund that is not lower than the corresponding return on the Bloomberg AusBond Treasury 0‑1 Yr Index.\n\nNote: Paragraph (b) accounts for variability in business and market conditions.\n","sortOrder":0}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"The Directions remain tightly focused on their original purpose: guiding investment decisions for the Australian Business Securitisation Fund to support SME lending. The scope has not expanded beyond the mandate set out in the parent Act."},"complexity_factors":["Short document (only 8 sections across 2 Parts)","Minimal defined terms (only 3 definitions in section 4)","No cross-references to other legislation beyond the parent Act and Future Fund Act","Straightforward structure with clear prioritisation criteria in section 6 and decision-making factors in section 7","Single layer of conditions without nested exceptions","Uses plain language investment concepts rather than technical financial instruments"],"plain_english_summary":"The Directions set how the government-backed Australian Business Securitisation Fund may invest: buying debt securities backed by SME loans to free up lender capital and expand business credit. They bind the Treasurer to prioritise underdeveloped parts of the SME lending market, build a durable private market, encourage investor participation, and limit speculative or residential exposures while keeping risk reasonable. The rules matter because they aim to lower SME financing costs and boost competition among lenders."},"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":false,"description":"The instrument does not expand or curtail the Minister’s statutory power; it directs how the Minister must exercise the existing power under section 12 of the Act by setting investment priorities, decision criteria and a risk/return objective (see s5 and s6–s8). It therefore narrows operational discretion by prescribing aims and benchmarks but does not alter the legal scope of the underlying power."},"complexity_factors":["Multiple, potentially competing objectives to balance (market development, private-sector crowd‑in, competition, prudent returns) (see s6 and s7).","Significant ministerial discretion in investment choice and judgement calls about market impact and necessity of below‑market returns (s7(c), s7(b)).","Ambiguous and qualitative terms that require interpretation (e.g. “underdeveloped sectors”, “encourage”, “promote competition”, “acceptable but not excessive” risk) (s6, s8(a)).","Requirement to consider exit implications and avoid causing long‑term market dysfunction — implies forward‑looking market analysis (s7(d)).","Allowance for investments at below‑market rates subject to justification against policy priorities and other criteria — creates trade‑offs and evidentiary needs (s7(c)).","Reference to an external financial benchmark (Bloomberg AusBond Treasury 0‑1 Yr Index) for medium‑term return aiming, adding operational reporting and measurement requirements (s8(b)).","Cross‑references to other statutes and definitions (Act; Future Fund Act 2006 definition of financial asset) that affect scope and interpretation (s3, s4).","Limited procedural detail about how decisions must be documented or reviewed — compliance and oversight mechanisms are not specified in the instrument (implicit from structure of s5–s8)."],"plain_english_summary":"This instrument directs how the Minister must invest the Australian Business Securitisation Fund to support development of the SME securitisation market, encourage private-sector participation and competition, and avoid securities mostly tied to financial assets or residential property. It sets decision criteria and a medium‑term net return target measured against the Bloomberg AusBond Treasury 0‑1 Yr Index. The Minister chooses which securities the Fund buys, balancing market‑development goals, exit‑risk and an ‘‘acceptable but not excessive’’ risk standard; private investors and SME lenders are the primary parties affected."}},"importantCases":[],"_links":{"self":"/api/acts/australian-business-securitisation-fund-investment-mandate-directions-2019","history":"/api/acts/australian-business-securitisation-fund-investment-mandate-directions-2019/history","analysis":"/api/acts/australian-business-securitisation-fund-investment-mandate-directions-2019/analysis","conflicts":"/api/acts/australian-business-securitisation-fund-investment-mandate-directions-2019/conflicts","importantCases":"/api/acts/australian-business-securitisation-fund-investment-mandate-directions-2019/important-cases","documents":"/api/acts/australian-business-securitisation-fund-investment-mandate-directions-2019/documents"}}