Regulatory Alerts2022-05-17
Greater certainty for covered bond investors
New Zealand Finance Minister Bill English announced the introduction of the Reserve Bank of New Zealand (Covered Bonds) Amendment Bill to establish a new legislative framework for covered bonds. The legislation mandates the Reserve Bank to maintain a register of banks' covered bond programmes, thereby providing greater legal certainty for investors and depositors regarding the treatment of cover pool assets in the event of a bank default. This framework aims to offer clarity on segregated assets and align New Zealand's regulations with existing international standards while allowing for a transition period for existing programmes.
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