CTHRepealedLegislation
Banking (prudential standard) determination No. 6 of 2006 - Prudential Standard APS 120 - Funds Management and Securitisation
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Disclosure
- A key feature of funds management and securitisation schemes is that the payment of earnings and the return of capital to investors hinge on the cash flows from the underlying assets in which their funds are invested. Investors are exposed to investment risk, which may not be clear when investors are dealing with an ADI. To eliminate confusion, an ADI’s involvement in such schemes should be accompanied by clear disclosure that the investment in the schemes does not represent deposit or other liabilities of the ADI involved. Any recourse to the ADI for repayment of principal and/or interest will require appropriate capital support.