Special purpose companies gain exemption

SECURITISATION special purpose companies  and trustees have been granted a conditional exemption from the requirement to obtain an Australian financial services licence.

The exemption applies to dealing in and providing custodial services in relation to financial products as part of securitisation transactions.

The relief was issued after consultation with participants in the securitisation industry, industry groups and the Australian Prudential Regulatory Authority.

Australian Securities and Investments Commission director of regulatory policy Mark Adams said the market integrity provisions of the Corporations Act were achieved under the exemption where the special purpose securitisation only dealt in financial products on the advice of or under the supervision of an AFS licensee.