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  • OFS-1.8 OFS-1.8 Eligibility to Issue Asset-backed Securities

    • OFS-1.8.1

      For the issue of asset-backed securities, which include mortgaged-backed securities (certificates), the issuer must be a single purpose entity (vehicle) (SPV).

      January 2014

    • OFS-1.8.2

      The requirement to be a SPV does not preclude the addition to the pool of further assets during the life of the securities. Furthermore, other classes of debt securities may be issued by the SPV, backed by separate pools of similar assets.

      January 2014

    • OFS-1.8.3

      The audited financial statements requirements for previous years' statements do not apply to issuers of asset-backed securities (SPVs), but are required for the issue's originator and/or guarantor, as the case may be.

      January 2014

    • OFS-1.8.4

      Where an issue of asset-backed securities is backed by equity securities:

      (a) Those securities must be listed on an exchange;
      (b) The equity securities must represent minority interests in and must not confer legal or management control of the companies issuing the equity securities; and
      (c) Where options or conversion rights relating to equity securities are used to back an issue, these requirements apply in respect of the securities resulting from the exercise of those options or rights.
      January 2014

    • OFS-1.8.5

      There must be, until the date on which no debt securities are outstanding, an eligible independent trustee representing the interests of the holders of the asset-backed securities and with the right of access to appropriate, timely information relating to the assets.

      January 2014

    • OFS-1.8.6

      If the issuer issues debt securities guaranteed by mortgages on its property or any other collaterals, the legal procedures for mortgages must be undertaken in favour of the debt-holders, or a trustee representing them before offering the debt securities for subscription. The issuer itself must undertake such procedures or they may be undertaken by the party presenting the guarantee, if it is presented by a party other than the issuer. The issuer must, within a period not exceeding one month from the closing date of subscription, take the necessary measures to enter the loan value, together with all related details in the register in which the mortgage has been entered.

      January 2014