Regulatory Alerts2022-05-17
Cabinet Paper on Covered Bonds Registration Requirements and Insolvency Protections
The New Zealand Office of the Minister of Finance proposes a legislative framework to allow registered banks to issue covered bonds, amending the Reserve Bank of New Zealand Act 1989, CIMA, and the Companies Act 1993. The proposal mandates the registration of covered bond issues and requires the appointment of an independent asset pool monitor to verify cover pool assets. It further establishes insolvency protections by ensuring the segregation of cover pool assets held by special purpose vehicles from the issuing bank's other assets during statutory management or liquidation.
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