An update on legislation for covered bonds. The Reserve Bank of New Zealand (Covered Bonds) Amendment Bill has been reported back by the Finance and Expenditure Committee. The Bill seeks to amend the Reserve Bank of New Zealand Act 1989 to establish a registration regime for covered bond programmes, supervised by the Reserve Bank, and to provide legal certainty about the treatment of cover pool assets in the event that an issuing bank was placed into liquidation or statutory management. The Finance and Expenditure Committee recommends the Bill be passed with a number of technical amendments. A copy of the Bill is available here.
The Reserve Bank has published a consultation document on the registration process for covered bond programmes and other matters arising under the proposed legislation. This includes:
- the application process and information requirements;
- asset class designations;
- persons eligible to act as cover pool monitors;
- the form of the register;
Submissions close on 16 November 2012. A copy of the consultation document is available here.