Secondary Housing Financing Update Incoming: Rights-to-Receivables Recognized as Underlying Assets with 10% Cap on Purchases Incoming for EBA-SP

The Financial Services Authority (Otoritas Jasa Keuangan - “OJK”) is currently completing work on a new Draft Regulation on Guidelines for the Issuance and Reporting of Asset-Backed Securities in the Form of Participation Certificates (Efek Beragun Aset Berbentuk Surat Partisipasi - “EBA-SP”) for Secondary Housing Financing (“Draft Regulation”).[1] If it is ultimately enforced, then this new Draft Regulation will repeal and replace Regulation of the OJK No. 23/POJK.04/2014, which bears the same title as the Draft Regulation, as amended by Regulation of the OJK No. 20/POJK/04/2017 (collectively referred to as “Regulation 23/2014”).[2]