Purchase and Supply of Assets (including Securities Issued by Special Purpose Vehicles)

1. This Guidance Note details the “clean sale” requirements when an authorised deposit-taking institution (ADI) sells assets to special purpose vehicles (SPVs) or third parties. It also covers an ADI’s involvement in funds management or securitisation schemes, via:

(d) “spread accounts” and similar arrangements;

(e) the supply of revolving facilities to a SPV;

(f) the purchase of assets from a SPV; and

(g) the purchase of securities issued by a SPV.

2. All references to a “credit enhancement” should be read in conjunction with Guidance Note AGN 120.2 Credit Enhancement (AGN 120.2).