Structured Finance Support Fund
In March 2020 the Treasurer announced the Government’s intention to create the Structured Finance Support Fund (SFSF), initially consisting of $15 billion.
The Fund will enable the Government to support continued access to funding markets for small and medium enterprises (SMEs) impacted by the economic effects of the Coronavirus, and to mitigate impacts on competition in consumer and business lending markets.
The Treasurer also announced that the SFSF would be administered by the AOFM. The AOFM will make targeted investments in structured finance markets used by smaller lenders that provide consumer and business finance, investing in rated term securitisations and in rated and unrated securitisation warehouses.
The AOFM acknowledges the ongoing assistance of the Australian Securitisation Forum in making its deliberations. The AOFM would also like to gratefully acknowledge the assistance of officials from the Clean Energy Finance Corporation on elements of the AOFM’s overall strategy.
Legislation and supporting instruments
The enabling legislation for the SFSF, the Structured Finance Support (Coronavirus Economic Response Package) Act 2020, received Royal Assent on 24 March 2020.
The Treasurer has issued the following legislative instruments (commencing on 26 March 2020):
The Legislation and Directions provide the tools for the AOFM to intervene across a wide front in order to support the Government’s objectives to maintain the flow of credit beyond those ADIs who can access the RBA’s Term Funding Facility to Support Lending to Australian Businesses.
The SFSF’s investments in primary and secondary public term transactions, and commitments under private warehouse transactions, can be found in the following spreadsheet SFSF Reporting.xlsx (updated as at 4 December 2020).
The AOFM's communications regarding the SFSF are available below.
You can receive notification of future SFSF communications by subscribing to the AOFM email service.
Smaller lenders are encouraged in the first instance to engage with their existing warehouse providers and should read the above Direction closely prior to making an approach to the AOFM via email to email@example.com.